The community of business in Los Angeles is in an intriguing position to assess the constant shaking that accompanies Trumpism.
Business is generally good, on one hand.
But it’s not advisable, on the other hand, for any business to antagonize its customers or its workforce or suppliers by getting into politics.
A conundrum over Trumpism should come as no surprise.
The U.S. has been the primary proving ground for technological innovations that have reshaped the human experience in a single generation.
Our political system has not kept up with the fundamental societal changes wrought by the technological innovations. The disconnect has made our political center weaker than any time since the Vietnam War divided our nation.
Yet there’s a key difference between now and then: Our economy has done a much better job than our political systems of adjusting to the sweeping technological change that has roiled the larger domestic society.
Another key difference is President Trump himself – an aggressive individual who has had all the levers to be found in the most powerful office on earth at his disposal for the past 18 months, flaunting them with what looks to us to be personal relish.
The world has stood back, ducking Trump’s sharp-elbows for the most part.
The truth is that we’ve yet to see much in the way of any actual responses. There’s been a bit of rhetorical push-back, and photo ops have flourished, but world leaders appear to be thinking more than talking when it comes to Trump and the U.S. these days.
This brings uncertainty for the U.S. on the global stage – and that matters greatly to the community of business here because the economy of Los Angeles is inexorably tied to the rest of the world.
Clarity is needed in business, and some might be found soon at the Port of Los Angeles, where officials recently estimated that 15 percent of the total volume of cargo that passes through the facility stands to be hit by tariffs set to take effect on goods from China as part of a trade dispute.
It’s estimated that the 25 percent levies will hit goods worth an estimated $34 billion annually in L.A. – and it’s fair to figure that the Port of Long Beach faces a similar situation.
The two ports are estimated to support about 1 million jobs throughout Southern California.
There is a chance that the tariffs won’t lead to job losses or other problems if the White House or China’s leadership back away from the fight. Or if businesses absorb the costs of the tariffs, or pass them along to customers. Or if they begin to buy their goods in some country other than China.
A lot of ifs, to be sure – and you can include the possibility of a sudden change in stance by the Trump Administration.
For now, however, our best guess is to keep an eye on the local ports, where global markets could start to clarify Trumpism in a way our domestic politics has not.
