International Issues

Port of Los Angeles concerned about impact of tariffs

  • 1.  Port of Los Angeles concerned about impact of tariffs

    Posted 06-21-2019 11:54

    In a June 17, 2019 letter to the U.S. Trade Representative (USTR), regarding the possible imposition of tariffs on goods imported to the United States from China, the Port of Los Angeles stated:

    "While we understand and support efforts to address unfair trading practices and create fair and equitable access to foreign markets we remain concerned that the use of tariffs creates unintended impacts, including higher consumer prices, lower profitability for American firms,  uncertainty in the maritime supply chain, and the potential shifting of trade routes to t he detriment of the Port and the Los Angeles trade gateway."

     The letter also stated:

    "On the import side, our most recent analysis estimates the current and proposed tariffs directed at China will impact roughly 66 percent of all imports by value and 64 percent by both tonnage and container volume at the San Pedro Bay. That's $130 billion U.S. dollars worth of U.S. imports from China exposed to higher costs.

     "On the export side, approximately 50 percent of U.S. exports by value, 81 percent by tonnage, and 78 percent by container volume will be subjected to retaliatory tariffs by China.

    "Over the long term, the prolonged presence of tariffs on trade with China may cause American businesses to source materials and goods from other countries, which may result in shifting of trade volumes away from the U.S. West Coast and the Los Angeles trade gateway."
     

    The complete letter can be read at this link:  POLA – USTR letter