US ocean imports plunged in May on 145% tariffs on China
LOS ANGELES, June 11 (Reuters) - Imports at several of the busiest U.S. seaports dropped sharply in May, after President Donald Trump's short-lived 145% tariffs on many goods from China stalled trade, according to data from Descartes Datamyne.
The world's two biggest economies overnight announced a trade deal framework that sets tariffs on China at the prior 30% rate, subject to final approval. That rate would be combined with the 25% tariffs imposed during Trump's first term, bringing the total China rate to 55%.
China is the top U.S. supplier of goods that arrive by sea. That cargo is often for retailers like Walmart (WMT.N), opens new tab, as well as for major manufacturers, including automakers.
West Coast ports handle a significant percentage of China shipments and suffered large year-over-year volume hits in May. In California, Long Beach imports dropped 20.9% and Los Angeles fell 8.5%. In the state of Washington, Seattle was off 17.3% and Tacoma plummeted 39.4%.
On the East Coast, import volume at the Port of New York and New Jersey declined 15.3%. Norfolk, Virginia, dove 14.7%, and Wilmington, North Carolina, dropped 17.6%.
Gulf of Mexico ports Houston and Mobile, Alabama, were down 3.4% and 20.4%, respectively.
Overall U.S. imports of goods from China dropped 28.5% year-over-year in May, according to supply chain technology provider Descartes (DSG.TO), opens new tab.
Importers raced to secure bookings for paused China shipments after the first U.S.-China tariff truce lowered rates to 30% last month. Nevertheless, the head of the Port of Los Angeles, the nation's largest, said he does not expect a deluge of freight because 30% tariffs still translate into meaningfully higher costs for importers.
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