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Trump tariff uncertainty sidelines importers

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Port of Los Angeles May volume down double-digits from

last year

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Holiday shipping season off to soft start at Port of Los

Angeles

By Lisa Baertlein

LOS ANGELES, May 29 (Reuters) - Importer uncertainty

ahead of the vital holiday ocean shipping season remains high,

the executive director of the busiest port in the U.S. said on

Thursday, as a court battle broke out over President Donald

Trump's trade tariffs.

A U.S. Court of International Trade ruling late on Wednesday

threatened to kill or at least delay the imposition of Trump's

"Liberation Day" tariffs on most U.S. trading partners, but a

federal appeals court on Thursday temporarily reinstated those

duties.

Gene Seroka, executive director at the Port of Los Angeles,

said business is softer than usual going into traditional ocean

shipping season for back-to-school, Halloween, Thanksgiving and

Christmas merchandise.

He expects the port's May volume to be down by double-digit

percentages versus a year earlier, after 30% drops in the first

and fourth weeks of the month.

For June, 10 scheduled vessel arrivals to the Port of Los

Angeles have been canceled, including five in the first week of

the month, Seroka added.

"Companies really don't have the certainty, and they remain

on pause," he said, adding that since January, there have been

close to 60 different announcements on trade policy and tariffs.

The Port of Los Angeles is the No. 1 ocean gateway for goods

from China and seen as a barometer for trade between the world's

two largest economies. Key customers include major retailers

like Walmart ( WMT ) and sellers of parts for major auto makers

such as Ford.

Trump slapped 145% tariffs on China last month, halting many

shipments of goods to the United States. The resulting drop in

cargo volume was delayed by two to three weeks due to transit

times, and this month fewer ships carrying less cargo are

docking at the Port of Los Angeles and other seaports.

That's despite the U.S. and China striking a deal to

temporarily reduce tariffs on Chinese goods to 30% earlier this

month.

The federal appeals court on Thursday directed the

plaintiffs in the legal challenge to the tariffs to respond by

June 5 and the Trump administration to respond by June 9,

meaning the uncertainty is likely to drag on.

"People are really wagering right now, 'Do I put my order in

at elevated tariff rates? Could something change over time?'"

Seroka said. "There's no surge coming our way."