With President Donald Trump’s Inauguration Day announcement that he would impose 25% tariffs on China, Mexico and Canada beginning Feb. 1, JaxPort officials are watching for further details to determine how the port’s traffic could be affected by the change in U.S. trade policy.
In a Jan. 23 presentation to the JAX Chamber Transportation and Logistics Council, JaxPort Chief Commercial Officer Robert Peek said there are “a lot of question marks” surrounding the tariffs and “we don’t really have enough information to know yet” whether the tariffs would reduce activity at the port.
“We don’t know exactly which countries he intends to impose tariffs on,” Peek said. “Will it be all countries? Just China, Canada and Mexico? Will the tariffs start Feb. 1? Will anything be exempt?"
Trump has made tariffs a focal point of his economic policy, saying he would establish an External Revenue Service to collect the tax on imported goods and other revenue from foreign nations.
In a reflection of Peek’s point about uncertainty surrounding the issue, Trump told global business leaders at the World Economic Forum on Jan. 23 that Canada could avoid the tariffs if it chose to “become a state” of the United States.
“You can always become a state, and if you’re a state, we won’t have a deficit,” he said. “We won’t have to tariff you.”
Peek, when asked how JaxPort was affected by the tariffs imposed by Trump during his first term in office, said it was difficult to accurately gauge the effects.
Although tariffs may directly prompt shippers to curtail or halt transport of various products, he said, other factors may be involved in those decisions.
Regardless of how Trump may structure new tariffs, Peek said JaxPort would be insulated to the economic impact by its strategic focus on diversifying the types of products that move through the port.
To protect the port from disruptions in any particular geographic area or industry, JaxPort officials have established connections to several global regions for an array of products that includes vehicles, containers, dry bulk items like sand and gravel, and so-called “breakbulk” items such as grain, fluids and large equipment that doesn’t fit in containers.
Another buffer for JaxPort is its connection to Puerto Rico. More than 85% of the goods shipped to and from the island go through Jacksonville.
Those products would not be subject to tariffs.
Peek said Puerto Rico accounts for about 50% of JaxPort’s container traffic.
“We are probably as well positioned as any port in the country in terms of weathering any type of singular action, whether it’s a natural disaster, political instability or trade policy, from impacting us significantly,” he said.
Peek said JaxPort experienced an increase in cargo flow at the end of 2024 as importers increased orders to brace for the tariffs. According to the port, container volume rose 17% in November and December, with a total tonnage increase of 13%.