Trump’s tariffs hit the West’s busiest port – with traffic down by nearly a third
Driving south from Los Angeles along the coast, you can’t miss the San Pedro port complex. Dozens of red cranes pop up from behind the freeway.
The sound of industry whirs as containers are unloaded from hulking ocean liners on to waiting lorries and freight trains that seem to never end.
The port of Long Beach combines with the port of Los Angeles to make the busiest port in the western hemisphere.
The San Pedro port complex
The colourful metal containers contain anything and everything, from clothes and car parts to fridges and furniture. Around $300bn of cargo passes through here every year and 60% of it is from China.
But at the moment, it’s far less busy than usual. Traffic is down by a third, compared with this time last year.
In the closest part of the mainland United States to China, this is Donald Trump‘s new tariffs policy in action, the direct result of frozen trade between the two countries.
“For the month of May, we expect that we’ll be down about 30% from where we were in May of 2024,” Noel Hacegaba, the port of Long Beach chief operating officer, tells Sky News.
“What that translates into is fewer ships and fewer containers. It means fewer trucks will be needed to transport those containers from the port terminal to the warehouses. It means fewer jobs.”
Noel Hacegaba, chief operating officer of the port of Long Beach
‘We’re barely surviving’
Helen Andrade knows all about that. She and her husband, Javier, are both lorry drivers. Helen only got her license in the last few years, so when work dries up, she is likely to be impacted first.
“I’m lying awake at night worrying about this,” she says.
“We’re barely surviving and we’re already seeing work slowing down. In my case, there are two incomes that are not going to come in. How are we going to survive?”
Helen adds: “I’m scared for the next two weeks, because over the next two weeks, I’m going to see where this is going, whether I have saved up enough money, which I know that I have not.”
Lorry driver Helen Andrade
In Long Beach, one in five jobs is connected to the port. But what happens in the port doesn’t stay here.
The shipments reach every part of the country and already, a shortage of certain items imported from China and price hikes are taking hold.
A short drive away is downtown LA’s toy district, a multicultural area consisting of a dozen streets of pastel-coloured buildings, home to importers and wholesalers of toys, much of which is imported from China.
Colourful balloons line windows in LA’s toy district
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One woman in a toy warehouse is reading a Chinese newspaper. She points to a headline about the 145% tariffs.
“I can’t afford this, I can’t afford this, I’m going to have to put prices up,” she says, exasperated.
Empty shelves
Around the corner is a party shop, selling gift bags and wrapping paper. There are empty shelves which would otherwise have been full.
“These empty spaces are where we stopped importing from China because the tariffs are too high,” says the owner, Jacob Mok.
Party shop owner Jacob Mok
Empty shelves in Mr Mok’s party shop
He tells Sky News: “I’ll keep watching China and America negotiations. I hope as soon as possible they reach a deal because this is very hard for us.”
Jacob is not alone. The impact is being felt throughout the supply chain.
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US trade secretary Scott Bessent will meet his Chinese counterpart in Switzerland this weekend.
Pressure is growing on Mr Trump’s team to strike a deal with China and do it quickly.
Vladimir Putin told Donald Trump he “will not back down” from Russia’s goals in Ukraine during a phone call today, the Kremlin has said.
The Russian president spoke to his US counterpart for almost an hour, and Mr Trump “again raised the issue of an early end to military action” in Ukraine, Kremlin aide Yuri Ushakov told reporters.
In response, Mr Putin said “Russia will not back down” from its aims there, which include “the elimination of the well-known root causes that led to the current state of affairs,” Mr Ushakov said.
The phrase “root causes” is shorthand for Moscow’s argument that it was compelled to invade Ukraine in order to prevent the country from joining NATO.
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Ukraine and its European allies say this is a pretext to justify what they call an imperial-style war, but Mr Trump has previously shown sympathy with Russia.
At the same time, Mr Putin told the US president that Russia is ready to continue negotiating, the aide said.
The Russian president said any prospective peace deal must see Ukraine give up its NATO bid and recognise his country’s territorial gains.
Volodymyr Zelenskyy, seen with Mr Trump in June, is pushing for Ukraine to join NATO. Pic: Reuters
He also briefed Mr Trump on agreements made last month, which saw Russia and Ukraine exchange prisoners of war and dead soldiers.
Specific dates for the third round of peace talks in Istanbul were not discussed – nor was the US decision to halt some shipments of critical weapons to Ukraine.
Mr Putin and Mr Trump’s call came after the Pentagon confirmed some weapons due to be sent to Ukraine have been held as it reviews military stockpiles.
The paused shipments include air defence missiles and precision-guided artillery, two people familiar with the situation have said.
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The decision led to Ukraine calling in the acting US envoy to Kyiv on Wednesday to underline the importance of military aid from Washington.
Kyiv also cautioned that the move would weaken Ukraine’s ability to defend itself against intensifying Russian airstrikes and battlefield advances.
Mr Putin and Mr Trump’s phone call was the sixth they have publicly disclosed since the US president returned to the White House in January.
Donald Trump’s ‘big beautiful bill’ has been passed by the US congress, sending it to the president to sign into law.
The controversial tax breaks and spending cuts package cleared its final hurdle as the Republican-controlled House of Representatives narrowly approved the bill with a 218-214 vote.
The bill delivers tax breaks Mr Trump promised in his 2024 election campaign, cuts health and food safety programmes, and zeroes out dozens of green energy incentives.
According to the nonpartisan Congressional Budget Office (CBO), it will lower tax revenues by $4.5trn over 10 years and add $3.4trn to the US’s $36.2trn debt.
But despite concerns over the 869-page bill’s price tag – and its hit to healthcare programmes – Republicans largely lined up in support, with just two rebelling on the vote.
House Speaker Mike Johnson is congratulated following the vote. Pic: Reuters
Every Democrat in Congress voted against the bill, blasting it as a giveaway to the wealthy that will leave millions of Americans uninsured.
House Speaker Mike Johnson made the Republicans’ closing argument for the bill, telling Congress: “For everyday Americans, this means real, positive change that they can feel.”
Earlier, the House’s Democratic leader Hakeem Jeffries gave a record-breaking eight-hour and 44-minute speech against it.
“The focus of this bill, the justification for all of the cuts that will hurt everyday Americans, is to provide massive tax breaks for billionaires,” he said.
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The bill’s spending cuts largely target Medicaid, the health programme that covers 71 million Americans on low incomes.
It will tighten enrolment standards, institute a work requirement and clamp down on a funding mechanism used by states to boost federal payments.
The changes could leave nearly 12 million people without health insurance, according to the CBO.
On the other side of the ledger, it will stave off tax increases that were due to hit most Americans at the end of the year, when tax cuts from President Trump’s first term were due to expire.
It also sets up new tax breaks for overtime pay, seniors and tipped income.
Read more:
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The bill narrowly passed the US Senate on Tuesday after vice president JD Vance cast the deciding vote to break a 50-50 tie.
Mr Trump will sign it into law on Friday at 5pm local time (10pm in the UK), the White House said.
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