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Holiday Shipments Surge at Port of Los Angeles Amidst Tariff Concerns
The Port of Los Angeles experienced its busiest June in its 117-year history, as companies accelerated the importation of seasonal merchandise to circumvent potential tariff increases later in the summer. July imports are also showing strong activity, according to Gene Seroka, the port’s executive director.
Seroka described the current import pace as a “tariff whipsaw effect,” characterized by a slowdown when tariffs are in place and a rebound when they are paused. He anticipates that consumers may face lower inventory levels, reduced product selection, and higher prices as the holiday season approaches.
Retailers are also adjusting their strategies. One business owner, who co-owns two JaZams stores, began placing holiday orders two months earlier than usual for essential items, aiming to secure them at current pricing. This proactive approach included doubling warehouse space to accommodate the increased stock. He also noted that some shoppers are attempting to purchase items before potential price hikes,mirroring business strategies.
Customers have been observed buying popular holiday items like Jellycat plush toys and large stuffed animals. While sales are welcomed, the owners are concerned about the prospect of needing to restock at a higher cost. The challenge of maintaining a product offering that meets customer needs while navigating these economic pressures is increasing daily.
Another business, Balsam Brands, has had to accept a less extensive selection of ornaments and frosted trees for the upcoming season. The window for importing notable additions to their product range is closing. The company’s goal is to create joy, but they acknowledge that they will not be able to offer as many desired items as in previous years, a situation they find undesirable.
Importers are currently subject to a baseline tariff of 10% on seasonal merchandise.
