Presents will arrive in time for the holidays, but they are going to be more expensive
Officials at one of America’s largest ports say consumers don’t have to worry about products arriving in time for the holidays, but they may face higher prices.
Imports at the Port of Long Beach are flowing smoothly through their facilities despite the government shutdown and tariff uncertainties, port managers said. Still, they acknowledge that the volume and prices of products in millions of containers coming through the port indicate that imports are becoming increasingly expensive and consumers are becoming more cautious.
Until now, retailers, manufacturers and other middlemen have covered most of the tariff costs, but that’s changing as it becomes more clear which tariffs are here to stay, Mario Cordero, general manager of the Port of Long Beach, said at a virtual news conference Friday.
“Consumers will likely see price increases in the coming months as shippers continue to pass on tariffs imposed on goods, with a greater percentage of these costs being passed on to the consumer,” he said.
Cordero, who drinks Starbucks coffee, said he has seen the price of a cup of coffee increase by 15% and more consumers are going to discount stores to find deals. However, potential price increases could be offset if the US and China make new trade agreements.
The Port of Long Beach, a gateway for trade between the United States and the Asia-Pacific, has released new data that provides a glimpse into how President Trump’s repeatedly imposed tariffs are affecting goods imported from key trading partners like China.
This week, the U.S. Supreme Court also began hearing arguments as justices examine the legality of Trump’s tariffs.
Last year the port saw a decline in the movement of containers filled with certain goods such as winter clothes, kitchen appliances and toys that people often buy as gifts; This is a sign that consumers are likely being cautious about spending.
Still, the impact of tariffs on cargo volume was not as bad as some experts predicted. Some experts predict the port could see a drop in cargo volume of up to 35%, Cordero said.
“It’s fair to say clearly today that the worst-case scenarios that some people predicted have not come true,” Cordero said. “The challenges were many, and there is no doubt that many companies and their employees suffered, but it turned out that cargo volume was as high this year as it was last year.”
In fiscal year 2025, which runs from October 2024 to September 2025, the port surpassed 10 million 20-foot equivalent units (TEUs) for the first time, an 11% increase over the same period last year. TEU is a measurement used to define cargo capacity for container ships and terminals.
While there was a decrease in the amount of TEU transported in the port in October compared to the same period in 2024, Cordero said that he thought the port would finish 2025 in the “positive zone”.
839,671 TEUs were moved in October. This was because retailers and shippers began shipping goods earlier than usual to avoid fees and stock their warehouses due to tariffs.
The Port of Long Beach is an economic engine for California. Officials say it helped create 691,000 jobs in Southern California. More than 2.7 million U.S. jobs are said to depend on the Port of Long Beach.
