‍

The New Tariffs Are Strangling U.S. Ports, and The Whole Supply Chain Will Feel It

‍

A Shift Too Large to Ignore

The United States is tightening its grip on maritime trade—this time through targeted tariffs aimed at Chinese vessels. But the shockwaves of this policy move won’t stay at sea. Port authorities from California to New Jersey are warning of a sharp drop in cargo traffic, potential job losses, and a financial squeeze on small and mid-sized businesses that depend on steady flows of imported goods.

The Port of Los Angeles and Port of Long Beach, which together handle nearly 40% of all U.S. container imports, are forecasting significant disruption. The stakes are high. In 2022 alone, the two ports generated over $7.5 billion in federal and state tax revenue, and their operations supported more than 3 million jobs nationwide.

‍

What the New Tariffs Say... And What They Mean

The latest tariff rules, issued by the Office of the United States Trade Representative (USTR), include escalating port fees targeting:

• Ships built in China
• Ships owned by Chinese firms
• Ships departing from Chinese ports

The revised structure introduces per-voyage fees starting at:

• $50 per net ton (NT) for Chinese-owned vessels
• $18 per NT or $120 per container for Chinese-built ships
• $150 per car-equivalent unit (CEU) for non-U.S. built car carriers

These fees are scheduled to increase annually over the next three years. There’s no cap on the maximum cost, and each vessel can be charged up to five times per year.

While the first 180 days offer a temporary fee freeze, port operators and shipping executives aren’t waiting. As early as April, port authorities across the country began issuing stark projections.

‍

Port Activity Drops: What the Numbers Reveal

• Port of Los Angeles: Officials expect a 40% decrease in inbound traffic compared to 2024 levels (CBS News).
• Newark and Elizabeth, NJ: Trucking companies, warehouse operators, and importers are reporting contract delays and cargo rerouting away from New York-area ports (NorthJersey).
• Houston Port Region: Rising uncertainty is already affecting hiring plans and logistics costs (Houston Chronicle).

In short, the busiest U.S. gateways are bracing for fewer ships, less work, and a domino effect that threatens jobs and revenue across multiple industries.

The Broader Economic Impact

Port disruptions are not isolated. They affect:

• Drayage firms and trucking companies losing consistent container volume
• Cross-dock operations and 3PLs scaling down staffing
• Distribution centers seeing dips in throughput
• Local governments facing tax shortfalls from reduced port-related activity

In LA County alone, port slowdown projections are tied to tens of thousands of jobs at risk. Nationwide, the effects of reduced import activity could be felt in everything from warehouse hours to consumer prices.

‍

Shipbuilding Gap: A Hard Truth for ‘Buy American’ Policies

One intent behind the tariffs is to spur U.S.-based shipbuilding. But that ambition runs into hard limits. Only 10 U.S. shipyards can produce ocean-going vessels—and just one, Philly Shipyard, has a recent record of building container ships.

Ironically, that shipyard is now owned by South Korean conglomerate Hanwha, which finalized its acquisition in December 2024. So while tariffs aim to shift supply chains closer to home, the domestic industrial base may not be ready to pick up the slack—at least not in the near term.

‍

What Companies Should Do

Operations and Finance Teams can:

• Review carrier contracts: Understand exposure to the new China-related fees.
• Diversify sourcing and transit options: Consider Southeast Asian, Mexican, or Canadian suppliers and routing options.
• Evaluate freight bills closely: Rising fees can lead to billing inconsistencies—scrutinizing invoices is essential.
• Stay informed: Policy changes will likely continue as trade politics evolve through 2025 and beyond.

‍

Fewer Ships, Bigger Questions

For Ports, Tariffs are economic decisions with immediate consequences. Fewer ship calls mean fewer hours worked, smaller paychecks, and less local revenue.

The shift is already underway.

Whether you're managing inventory from the Inland Empire or coordinating drayage on the Gulf Coast, the cost of delay is no longer theoretical. it’s showing up in balance sheets.

—


‍

📎 Looking for Resources?

If your operations touch a port it has become an operations problem. We’ve compiled articles and guides to help you keep your head fresh.

📬 Visit Our blog or schedule a freight audit consultation with our team to address your specific risks before the next vessel skips our docks.

---

‍

‍