Walk through the streets of Downtown Los Angeles and you’ll hear it everywhere—from warehouse managers in the Fashion District to freight brokers near the ports: the cost of trade is rising, and fast. Whether you’re moving toys, fashion, or food, the numbers are getting tougher to manage. As someone who manages social media and messaging for the local logistics scene, including longtime players like City Business Shipping, I’ve been hearing the same theme all spring—importing and exporting in 2025 is not what it used to be.
Let’s break down why.
What’s Driving the Spike in Trade Costs?
It all starts with tariffs, specifically the Trump administration’s latest trade policy moves. In April 2025, a new set of tariffs were rolled out, including some massive jumps on goods from China—up to 145% in some cases, though many were later reduced to 30%. These aren’t just minor fees. They turn a $10 shipment into $13 or even $25 overnight.
And when you multiply that across full containers coming through the Port of Los Angeles? That’s a city-sized ripple effect.
Los Angeles Is Feeling It First
As the country’s busiest port system, L.A. and Long Beach are the frontline. Recent data shows imports dropped nearly 24% between April and May, especially from Asia. For companies like City Business, which has been helping customers navigate the global shipping scene since Peter Adeli founded it in 1995, these numbers mean real-world challenges—rerouted containers, delayed deliveries, rising overhead.
Inside warehouses, there’s less movement. Fewer ships docking means fewer shifts for dockworkers and fewer jobs for truckers. And if you’re exporting California wines, avocados, or apparel, you’re also likely running into retaliatory tariffs—basically, other countries hitting back with their own taxes on our goods.
Toys, Fashion, Garments – Our Core Industries Are Hit Hard
The sectors Downtown L.A. knows best—toys, garments, and fast fashion—are among the most exposed.
Take toys: many are still made in China. A spike in tariffs on educational toys meant companies were suddenly paying an extra 30% to 145% just to bring in product. Small local sellers can’t afford that. Some are trying to shift to Vietnam or India for sourcing, but that takes time—and money.
Same story with fashion. Most of America’s clothing is still made overseas. Fast fashion players who once relied on cheap freight from China are now scrambling to find alternative sources. And local designers? They’re squeezed on both sides—higher material costs and longer wait times for shipments.
How Businesses Are Adapting
The ones making it through this storm are doing a few smart things:
- Sourcing from new countries – More clients are asking us how to route through Vietnam, Indonesia, or even Latin America.
- Reworking logistics timelines – If it used to take 30 days port-to-door, now they’re planning for 45 to 60.
- Using bonded warehouses – This lets them store goods without paying duties right away, helping with cash flow.
- Educating customers – Transparency matters. Many L.A. brands are telling their followers exactly why prices are rising.
At City Business Shipping, Peter and longtime team members like Richard Palma are walking clients through these steps every day. It’s not just about shipping anymore—it’s about strategy.
From Student Vision to California Shipping Leader
City Business Shipping began in 1995 as a dream sparked by University of Southern California student, Peter Adeli. Driven by the needs of his growing family, he envisioned a company bigger than just a pack and ship store. That vision became reality with the commencement of his senior thesis for the USC School of Entrepreneurship. The initial location was a small building in the bustling Fashion District of Los Angeles, and City Business quickly became the originator of consolidated shipping from the Garment District.
What started with just two employees grew rapidly. By 2001, they opened a second retail location in the Toy District. In 2004, they expanded into the San Pedro Mart District, launching a warehouse and fulfillment operation that allowed them to scale further—adding trucks, space, and a growing list of satisfied clients.
As online shopping took off, City Business Shipping evolved too. Clients asked for service in Northern California, and in 2017, they answered—opening a state-of-the-art warehouse in South San Francisco equipped with a fleet of box trucks.
Beyond the Box: A Total Shipping Solution
City Business Shipping goes far beyond traditional packing services. They offer domestic and international shipping, custom crating, parcel fulfillment, freight consolidation, and logistics solutions for businesses navigating today’s trade landscape.
And their roots still run deep in the community. Their retail locations in the heart of L.A.’s Fashion District are tailored specifically for fashion businesses, offering consultative packaging services and high-quality imported materials.
Meet City Business Shipping
If you’re looking for a reliable partner in shipping, packaging, or logistics, City Business Shipping is a long-running service specializing in domestic and international shipping, plus packing and crating.
- Address: 225 E 9th St, Los Angeles, CA 90015
- Phone: (213) 612-4949
- Hours: Open ⋅ Closes 5:30 PM
From one student’s vision to a statewide logistics leader—City Business continues to be the go-to name for California’s shipping needs.