The article discusses the potential adverse effects of proposed tariffs on the warehouse sector in Los Angeles County. As leasing activity slows due to uncertainty regarding tariff implementation, businesses are hesitating to expand into new spaces. Analysts predict significant declines in imports, driving vacancies higher and slowing construction in the industrial market. The wide-ranging tariffs, particularly those on China and other Asian countries, could disrupt trade, a core component of the LA economy, prompting concerns among business owners about the future.
"If tariffs cause imports to fall 25% as predicted by the Tax Foundation think tank, the result would be severely negative for the industrial market with rising vacancy and slowing of new construction," analyst Jesse Gundersheim said.
"The unknown around it is not good for business. It's not good for decision making," said Gundersheim, emphasizing the uncertainty businesses face due to potential tariff implementations.
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