Through August, the port handled 2.19 million 20-foot equivalent units (TEUs), down from 2.4 million during the same period last year — an 8.76% decrease. Export loads fell by 9.3%, while imports slipped 7.5%, according to port data as reported by Virginia Business.

Port spokesperson Joe Harris said the decline reflects “the overall trade environment,” which remains unstable. “It makes it hard for cargo owners, and the ports are the ones that have to move the cargo,” Harris explained. “As soon as we have a more stable trade environment … I can’t say you’ll see volumes go up, but they’ll level off.”

Economist Vinod Agarwal of Old Dominion University said tariffs are the main driver of the downturn. He pointed to unpredictable policy shifts as a major challenge for businesses. “Businesses do not like uncertainty,” Agarwal said. “They may not like the policies, but they can live with it if they know what in the world to expect.” (RELATED: Hitachi Energy to Invest $457M in Virginia Plant, Creating 825 Jobs)

So far, consumers have been shielded from the worst effects, with companies either absorbing added costs or stockpiling goods. But Agarwal warned that higher prices are inevitable if tariffs persist. “We don’t think we are taxing the consumer, but we actually are, indirectly, because consumers are going to pay for these goods in terms of higher prices,” he said.

Despite the slowdown, the Port of Virginia continues to pursue major expansion projects. A $450 million dredging effort — set to make the harbor the deepest and widest on the East Coast — is on track to finish by year’s end. Meanwhile, the first phase of a $650 million upgrade to Norfolk International Terminal’s north terminal is scheduled for completion in October. (RELATED: Youngkin: VA Economy in “An Extraordinary Position,” Medicaid Funding Safe)