Specifically, the letter highlights that the Port is the largest gateway for waterborne containerized cargo, along with Port of Long Beach; According to the port, the San Pedro Bay Port Complex handles approximately 40% of all containerized imports and 30% of all containerized exports for the United States. The cargo handled by both ports generates over $310 billion annually in national economic impact.

In the meantime, trade with China accounts for a large segment of this cargo.

However, the Trump administration is mulling imposing a further 25% tariff on over USD 300 billion worth of goods imported into the U.S.

The port’s analysis estimated that current and proposed tariffs would impact some 66% of all imports by value and 64% by both tonnage and container volume at the San Pedro Bay.

Over the long term, the prolonged presence of tariffs on trade with China may cause American businesses to source materials and goods from other countries, which may result in shifting of trade volumes away from the U.S. West Coast and the Los Angeles trade gateway.

As Lighthizer stated in a testimony before the US Congress on June 20, the US and China were about to begin negotiations on the tariffs.