LA Will Suffer From Chinese Export Tariffs
The Port of Los Angeles’ trade will suffer from any export tariffs placed on goods destined for China as it serves a large amount of business bound for the country while the US would struggle to cope against competitors, an economic expert on NPR’s Morning Edition has warned.
Speaking with NPR, Stephen Cheung, president of the trade-promoting not-for-profit World Trade Center, Los Angeles, said that following tariff increases on Chinese goods, the anticipated backlash would hit LA-based manufacturing industries, all of which export to China from the Port of Los Angeles, for which China is the source of over half of $284bn of trade, or the Port of Long Beach.
Mr Cheung commented: “Those products are now potentially on the line for an increase in tariff. And when it’s more expensive for us to export our product into China, we’re not going to be as competitive with other products coming from Europe, coming from Japan, coming from Korea.”
NPR also reported that Nick Vyas, who heads the Center for Global Supply Chain Management at the Marshall School of Business at the University of Southern California, stated, that if Chinese tariffs continue, prices at Walmart and dollar stores, which get goods from China, are going to go up, impacting the whole country.
Stressing the potential fallout for the Californian ports, Mr Vyas remarked: “Roughly 40 percent of the goods that touches all 50 states comes through San Pedro Bay, which is part of Los Angeles and Long Beach.”