In the port of Los Angeles, the waltz of the cranes that download the containers brought from Asia by immense ships has dislocated for a few days: this barometer of the US economy becomes inactive due to the commercial war launched by Donald Trump. “We could hear a fly fly, it’s really unusual,” said its director, Gene Serka.
With the port of Long Beach, its twin and direct neighbor, the area represents the largest port complex in the United States and the main entrance door to Chinese products in the country. Enough to make it the first victim of a crisis that threatens to alter the daily life of Americans: missing containers contain thousands of furniture, toys or clothes that are normally expected in stores.
For the week of May 4, the port of Los Angeles will receive “up to 35%” less deliveries, compared to the same period last year, according to Gene Seroka. The Port of Long Beach has already made its calculations throughout the month of May, and expects a fall of 30% of imports. In both ports, ship cancellations are counted by dozens. “Many retailers and manufacturers have pressed the pause button and have suspended all China’s loads,” summarizes Geneka.
Because with the customs tasks of 145% imposed by Donald Trump, “the cost of a product manufactured in China is now twice and average higher than last month.”
Empty rays fears
In addition to the trade that has become impossible with China, the effects of customs tasks of 10% in the products of dozens of countries also feel. The drop in imports “is not just a problem that affects the west coast,” he warned of Long Beach Port, Mario Cordero, at a press conference this week. “This affects all ports, whether they are on the east or Gulf coast (from Mexico, editor’s note).”
At the beginning of the year, Long Beach and Los Angeles saw American companies hurriedly prepare for customs tasks, promised by Donald Trump throughout their campaign. The volumes of charges jumped because their orders increased to build a maximum of uncomplete actions.
But now that the port machine is flu, everyone wonders how long the United States can keep in these reservations. “Stores should not be exhausted before the third quarter, unless a phenomenon of panic purchase grip to consumers by then,” says Pantheon’s macroeconomics in a recent note.
Gene Serka believes that the actions of many merchants who ask for the port of Los Angeles will be exhausted for “five to seven weeks.” Beyond that, there will be “fewer options (on shelves, note) and more expensive prices”, especially for summer fashion and school supplies for the beginning of the school year, underlines. “The American consumer will be hit directly in the wallet.”
“IRA” against Trump
For Antonio Montalbo, which is one of the 900,000 workers in the logistics sector in southern California, the event has already begun. This head of a small road transport company must replace the owner of one of its heavy products vehicles: the room, made in China, now costs double.
Donald Trump “created a hostile atmosphere to the port,” affects this 37 -year -old American, “angry” against a president “who does not care about the world and the working class.” Among its explosive maintenance costs and the fall of loads, the businessman believes that he will last “no more than six months” before having to announce bad news to his employees. “We will have to fire some of them soon (…) if customs duties are not eliminated,” he sighs.
However, the boss had voted for the Republican billionaire in November, because he trusted him to reduce the cost of living. “Now we have something worse than inflation,” he grows. “These are customs duties.”
Source: BFM TV
