(NewsNation) — The longer tariff disputes continue, the more likely it is that trouble at shipping ports will translate to “real pocketbook impacts for American consumers,” said Port of Seattle Commissioner Ryan Calkins.
Calkins said he expects fewer vessels coming into U.S. ports in the coming weeks, with less cargo on board when they arrive.
“We’re going to see a pretty significant drop off towards the end of May,” Calkins said of traffic. “And of course, that isn’t going to change, even if things improve in the trade dispute over the next few days.”
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He’s also heard from agriculture exporters that some ships have come back to port, with canceled overseas orders to blame.
Gene Seroka, executive director of the Port of Los Angeles, warned last Thursday within two weeks arrivals to the port “will drop by 35% as essentially all shipments out of China for major retailers and manufacturers has ceased.’’ Seroka added that cargo from Southeast Asia also “is much softer than normal with tariffs now in place.’’
With China — the world’s largest exporter — and its largest importer, the U.S., at odds over tariffs, myriad industries are seeing a massive shift in their usual business.
After Trump announced expansive tariffs in early April, ocean container bookings from China to the United States dropped 60% — and stayed there, said Ryan Petersen, founder and CEO of Flexport, a San Francisco company that helps companies ship cargo around the world.
“So the longer this dispute — means that factories in China are shuttered or ships aren’t leaving China — the longer it’s going to take to resolve that. And I do, I’m afraid that we are going to start seeing impact,” Calkins said.
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He clarified that the U.S. will likely see trouble with imports like clothing and furniture, “stuff that’s primarily made in China,” while essentials are likely to remain stable for now.
“We are going to operate 24/7, 365 days a year, regardless of how much traffic there is,” Calkins said.” So, don’t worry, the infrastructure is in place. When this dispute ends, we will be ready (to) open for business.”
The Associated Press contributed to this report.