The U.S. and China have agreed to cut tariffs on $60 billion worth of goods, a development announced over the weekend. In downtown New Orleans this week, the American Association of Port Authorities convention takes place.
Mikenna Richardson, an international trade and tariff advisor attending the convention, shared insights on the potential impact of the trade deal.
“If there is a decrease in tariffs, what we do see is that general pricing for consumers does tend to go down,” Richardson said. “It doesn’t happen quickly. It can take months, even a year. But, hopefully, if it stays that way, if the tariffs are gone permanently, then we can see some items become a lot cheaper for people.”
The trade deal affects a wide range of items, including wheat, grain, coal, toys, electronics, and Christmas decorations. However, Richardson noted that the price changes for consumers might not be immediately noticeable.
“Those small Amazon products, you know, under 20 bucks, you might see a dollar or two shift, but it’s not something that’s going to be so noticeable right away. It’s going to be slow,” she said.
Businesses, however, might feel some more immediate financial relief.
“A lot of businesses are just swallowing the tariff burden,” Richardson said. “So, the opportunity to just not pay that anymore would be incredible. It would honestly be life-changing for a lot of small, small businesses.”
Sang Yi, president and CEO of the American Association of Port Authorities, emphasized the critical role of maritime trade during the convention.
“What most Americans might not realize is that almost all of the goods that they think about are moved through waterborne trade,” Yi said. “Whatever tax policies or whatever international trade policies there are, the free flow of movement of goods is what’s going to be best for the supply chain. It’s going to be what’s best economic prosperity and national security.”
The convention, which concludes tomorrow, focused on energy innovation, artificial intelligence in port operations, securing federal funding and more topics.
Yi said ports across the U.S. employ 22 million people and contribute nearly $3 trillion to the nation’s gross domestic product.
The Port of New Orleans alone generates about $100 million in revenue annually, according to its website.
READ MORE:Get the Facts: Trade expert discusses U.S.-China trade deal at Port Authorities Convention with WDSU
