California struggles with Trump’s tariffs as layoffs, supply chain shocks hit home

US President Donald Trump

California’s economy is already feeling the sting of President Donald Trump’s new round of tariffs on Chinese goods, with layoffs beginning, shipping volumes plunging, and industries from green tech to homebuilding warning of deeper pain ahead. Business leaders say they are in the dark about what’s coming next — and that Washington isn’t listening, Politico reported.

The 145% tariff on Chinese imports has caused dozens of ships to cancel arrivals at West Coast ports, triggering fears of cascading job losses for dockworkers, truckers, and warehouse employees. Gene Seroka, executive director at the Port of Los Angeles, said he expects a 35% decline in container deliveries compared to last year. “Prices of products made in China now are two and a half times more than they were just last month,” Seroka told the Los Angeles Board of Harbor Commissioners, adding that importers are backing away from new orders.

Local leaders, no answers

Stephen Cheung, CEO of the LA County Economic Development Corporation, revealed that even his own nonprofit, which supports regional businesses, has suffered from budget cuts due to the economic uncertainty. “I actually had to lay off three people last week,” Cheung said, adding that Trump’s trade agenda has dried up donations and government backing. “What happens here in LA first will actually impact the rest of the nation.”

Cheung and other leaders say the Trump administration has failed to communicate with local stakeholders. Without regular contact with the US Trade Representative, the LAEDC has resorted to partnering with larger national groups to get its concerns heard. “There’s a complete lack of information,” Cheung said, noting that he often learns about trade policy shifts through news reports and social media.

Clean tech and construction at risk

The climate sector, especially electric vehicle and battery manufacturing, is also feeling the impact. Chinese-made lithium batteries make up a significant share of the cost of EVs. With tariffs now making those inputs significantly more expensive, industry leaders fear innovation and adoption of green tech could slow.

Meanwhile, the construction industry is facing its own crisis. California’s Building Industry Association is working with British Columbia to ensure access to lumber after devastating fires — a move at odds with the US Lumber Coalition, which is pushing for tariffs on Canadian wood.

“The U.S. lumber industry hasn’t proven itself able to pivot quickly to fill any gaps without raising prices,” said Dan Dunmoyer of the CBIA. He warned that uncertainty around tariffs has already delayed rebuilding projects and driven up material costs.

Tariff ripple hits California wine

In agriculture, California wine producers are caught in the crossfire. While some hoped that tariffs might help level the playing field against subsidized European imports, the reality has

been more painful. Canada, one of the top markets for California wine, has responded with retaliatory tariffs, leading to products being pulled from shelves.

“I think in the short term, this uncertainty and pulling the wine off shelves in Canada has probably done more harm,” said Stuart Spencer of the Lodi Wine Grape Commission.

Uncertainty fuels frustration

Despite White House officials monitoring the disruption, they’ve done little outreach. A senior administration official, speaking anonymously, said the message for now is simply to “be patient.”

But for California businesses already seeing layoffs, port slowdowns, and disrupted supply chains, patience may not be enough.