Maritime Industry Supports SB 263 (Gonzalez) to Direct Evaluation of Tariff Impacts on the California Economy
February 4, 2025
Contact: Natasha Villa, External Affairs Manager
nvilla@pmsaship.com
OAKLAND, CA – The Pacific Merchant Shipping Association (PMSA) supports SB 263, introduced by California State Senate Majority Leader Lena Gonzalez (D – Long Beach), Chair of the Senate Select Committee on Ports and Goods Movement. SB 263 will analyze the effects of newly imposed tariffs on California’s trade-dependent consumers, businesses, workers, and the state’s economy and tax revenues.
When new tariffs are imposed on global trade, they raise costs and uncertainty for businesses and consumers, and impact trade volumes. California’s ports, which handle 40% of U.S. imports and 30% of exports, are particularly vulnerable to tariffs which may slow trans-Pacific trade. Increased tariffs can disrupt efficient utilization of intermodal supply chains, drive up prices of core consumer goods and manufacturing components, and worsen affordability challenges nationwide.
“It is critical that policymakers have a critical assessment of the impact that tariffs on imports from our largest trading partners will have on California’s economy, businesses, workers, and tax revenues,” said Mike Jacob, PMSA President. “The stakes are high—California’s ports are the largest intermodal gateway for critical North American imports.”
A recent study of the impact of the Ports of Los Angeles and Long Beach, concluded that the total economic effects from the Ports’ combined activity support 3.5 million jobs and over $2.75 billion in state and local taxes.
SB 263 will require the California State Transportation Agency, Department of Finance, and Governor’s Office of Business and Economic Development to evaluate the potential impacts that tariffs may have on core components of the state’s economy, such as jobs and state and local tax revenues. This study will also evaluate the potential impacts of retaliatory tariffs to California exporters and impacts on affordability of consumer goods.
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About the Pacific Merchant Shipping Association (PMSA)
PMSA is an independent, not-for-profit association which represents owners and operators of marine terminals, ocean carriers, and vessels operating on the US West Coast. PMSA maintains offices in Oakland, Long Beach, and Seattle.