U.S. ports situated along the East and Gulf Coasts are scheduled to shut down on Tuesday due to a standoff between the union representing tens of thousands of dockworkers and an industry association that advocates for port operators and shipping companies regarding a new labor agreement.

Experts caution that an extended work stoppage may result in increased costs for goods nationwide and lead to shortages as the holiday shopping season approaches. According to the Conference Board, a one-week strike could potentially cost the economy nearly $3.8 billion and elevate consumer goods prices, labeling the situation a political minefield given its proximity to the upcoming November presidential election.

Additional assessments of the possible economic impact indicate that while the strike could have significant repercussions, the losses would likely represent only a small portion of the nearly $29 trillion U.S. economy.

A port strike could cost the U.S. economy billions of dollars each day, adversely affecting American businesses, workers, and consumers nationwide, stated Business Roundtable CEO Joshua Bolten in a recent announcement. We strongly encourage both parties to reach an agreement before the deadline on Monday night.