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As the holiday season approaches, uncertainty about tariffs and court battles continues to plague shippers.

The executive director of America's busiest port said that importer uncertainty remains high ahead of the crucial holiday ocean shipping season, as a legal battle over President Donald Trump’s trade tariffs broke out.

The U.S. Court of International Trade's ruling on Wednesday night threatened to delay or even kill Trump's "Liberation Day", tariffs, on the majority of U.S. trading partner countries. However, a federal appellate court reinstated these duties on Thursday.

Gene Seroka said that business was softer than normal as we enter the traditional ocean shipping seasons for back-to school, Halloween, Thanksgiving, and Christmas merchandise.

He expects that the port's volume in May will be down by double digits from a year ago, following 30% drops during the first and fourth week of the month.

Seroka said that 10 scheduled arrivals of vessels at the Port of Los Angeles were canceled for June. Five of these cancellations occurred in the first month of the year.

"Companies don't know what to do and are on hold," he said. He added that there have been more than 60 announcements since January on tariffs and trade policy.

Los Angeles Port is considered the world's No. The Port of Los Angeles is the No. Walmart, Ford and other major automakers are among the key customers.

Trump slapped 145% of tariffs on China in the last month. This halted many shipments to the United States. Transit times delayed the drop in cargo volume by 2 to 3 weeks. This month, fewer ships with less cargo dock at the Ports of Los Angeles and elsewhere.

This is despite the U.S. & China reaching a temporary reduction in tariffs of 30% on Chinese products earlier this month.

The Federal Appeal Court on Thursday ordered the plaintiffs of the legal challenge against the tariffs, to respond before June 5, and the Trump Administration to respond before June 9, indicating that the uncertainty will likely continue.

People are betting on whether they should place their order at the higher tariff rate. Could things change with time? Seroka replied. "There is no surge on our way." Reporting by Lisa Baertlein, Los Angeles; editing by Ni Williams

(source: Reuters)