Union Workers Could Disrupt US Trade Amid Upcoming Presidential Election

Approximately 45,000 union workers may strike at U.S. East and Gulf coast seaports on Oct. 1, potentially costing the economy $5 billion daily. The strike risks disrupting the supply chain, affecting everything from food to automobiles, and could raise shipping costs just weeks before the presidential election.

Approximately 45,000 union workers are set to potentially strike at seaports on the U.S. East and Gulf Coasts on Oct. 1, threatening to sever crucial trade routes mere weeks before the nation's presidential election.

JPMorgan analysts predict that the strike could cost the U.S. economy a staggering $5 billion each day. The walkout could impact 36 ports responsible for about half of U.S. ocean imports, leading to shortages and a rise in shipping costs, according to logistics experts. Prices of goods like bananas, clothing, and cars could escalate, exacerbating current inflation woes.

The International Longshoremen's Association (ILA) and the United States Maritime Alliance employer group are at odds over pay, with their six-year contract set to expire at midnight on Sept. 30. Unlike prior disputes, the White House has opted not to intervene, leaving the possibility of a strike looming large. Analysts warn that trade disruptions could cause significant delays and higher costs, affecting a wide array of industries nationwide.

(With inputs from agencies.)