Concerns Grow about Potential Trade War
WASHINGTON, D.C. — A new analysis by the U.S. Chamber of Commerce outlines the state-by-state impact of retaliatory tariffs from China, the European Union, Mexico, and Canada, which have been imposed in response to new U.S. tariffs on imported goods. The analysis shows how much of each state’s exports are threatened by retaliatory tariffs, highlights each state’s hardest-hit products, and shows the total number of jobs supported by global trade in each state, illustrating exactly what American families and consumers stand to lose in a potential trade war.
“Tariffs are beginning to take a toll on American businesses, workers, farmers, and consumers as overseas markets close to American-made products and prices increase here at home,”said U.S. Chamber President and CEO Thomas J. Donohue. “Tariffs are simply taxes that raise prices for everyone. Tariffs that beget tariffs that beget more tariffs only lead to a trade war that will cost American jobs and economic growth.”
As of this week, approximately $75 billion worth of U.S. exports will be subject to retaliatory tariffs. Escalating tit-for-tat trade actions promise to raise costs on American businesses and consumers, making it harder for families to afford everyday products like toilet paper, condiments, coffee, and ballpoint pens, which have been targeted for retaliation.
The analysis, found at www.thewrongapproach.com, includes a state-by-state breakdown of products targeted for retaliation by China, the EU, Mexico, and Canada, as well as how much those retaliatory tariffs could cost each state.
Several states’ economies stand to be especially harmed by an emerging trade war, including:
- Alabama: In total, $3.6 billion of state exports are threatened by retaliatory tariffs from China, the EU, Mexico, and Canada. Steel products, aluminum products, and soybeans are among Alabama’s hardest hit. See more.
- Michigan: In total, $2.3 billion of state exports will be subject to retaliatory tariffs. Steel and aluminum products, as well as automobiles, are among Michigan’s hardest hit. See more.
- Pennsylvania: In total, $1.7 billion of state exports are threatened by retaliatory tariffs. Steel products, iron products, coffee, and pastries are all among Pennsylvania’s hardest-hit products. See more.
- South Carolina: In total, $3 billion of state exports will be subject to retaliatory tariffs. Lawn mowers, steel products, iron products are among South Carolina’s hardest-hit exports. See more.
- Texas: In total, $3.9 billion of state exports will be subject to retaliatory tariffs. Pork and whiskey are among Texas’s hardest-hit exports. See more.
- Wisconsin: In total, $1 billion of state exports are threatened by retaliatory tariffs. Cheese, toilet paper, and ginseng are among Wisconsin’s hardest-hit products. See more.
“The administration is threatening to undermine the economic progress it worked so hard to achieve,” continued Donohue. “We should seek free and fair trade, but this is just not the way to do it. It’s time to reverse course and adopt smarter, more effective approaches for addressing trade concerns with commercial partners.”
The analysis was compiled using data on state exports from the U.S. Department of Commerce and data on U.S. exports subject to foreign tariffs from the official government sources of China, the EU, Mexico, and Canada.
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.