Topline

Longshoremen at all major ports along the East Coast began striking on Tuesday, a move that could have a significant impact on the U.S. economy just weeks before the presidential election.

Important facts

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Big number

45,000. That’s the number of longshoremen the ILA represents at 14 major East Coast ports affected by the closure. The affected ports are Baltimore; Boston; Charleston, South Carolina; Jacksonville, Fla.; Miami; Houston; Mobile; New Orleans; New York/New Jersey; Norfolk, Va.; Philadelphia; Savannah, Georgia; Tampa, Fla.; and Wilmington, Delaware.

Will President Joe Biden intervene?

The White House said Monday that Chief of Staff Jeff Zients and National Economic Council Director Lael Brainard met with the port operators group on Monday and urged them to resolve the issue quickly and fairly. President Joe Biden has the authority to intervene in the strike using the Taft-Hartley Act, which could postpone the strike for 80 days. Biden faced pressure from Republicans in Congress and business leaders to intervene and end the strike. Biden told reporters on Sunday that he would not invoke the Taft-Hartley Act, adding: “Because it’s collective bargaining and I don’t believe in Taft-Hartley.”

What impact will it have on the US economy?

Experts have offered slightly different numbers on the impact of the strike on the U.S. economy. Grace Zimmer, an economist at financial analysis firm Oxford Economics, told the BBC the strike could cost the economy up to $7.5 billion a week. JP Morgan estimates the number could be even higher, costing the economy between $3.8 billion and $4.5 billion a day. The strike is unlikely to have an immediate impact on consumers as retailers have shipped many holiday shopping items early and diverted other cargo to West Coast ports. However, the longer the strike lasts, the more noticeable its impact on prices becomes.

Further reading

Expected Longshoremen’s Strike Could Cost Billions – Here’s What You Need to Know (Forbes)