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The 5 States Hit Hardest by China Tariffs

Aug 13 , 2019

One of the pillars holding up the American economy is its ability to trade with other countries. But because of the U.S.-China trade war, American consumers and businesses are suffering. Trump administration tariffs are threatening as many as 2.6 million American jobs, raising the cost of living, and inflicting damage on manufacturers, farmers, technology companies, and more.

After Trump slapped $250 billion in tariffs on Chinese imports, China decided to retaliate with $110 billion in tariffs on American-made products.

According to a recent study by the U.S. Chamber of Commerce, the five states hit hardest by these retaliatory tariffs are California, Texas, Washington, Louisiana and Illinois. These states alone account for a whopping $42.7 billion in American-made exports to China that are under threat.

California, the world’s fifth largest economy, exported more than $16 billion to China in 2018. In the first five months of 2019, exports to China from California ports were down 9%.

One fifth of all the jobs in California, approximately 5.4 million, depend on international trade and investment. As a result of the trade war, California is facing stymied economic growth and potential job losses.

California Lieutenant Governor Eleni Kounalakis testified at a hearing of the California Assembly Select Committee on Asia/California trade and Investment Promotion, saying that the impacts were "especially worrisome" given California’s deep integration into the global markets and supply chains.

In Texas, over 3 million jobs are supported by global trade. Across the Lone Star State, farmers worry that an escalating trade fight between the United States and China will damage their livelihoods. And it’s not just farmers that will suffer.

As China’s economy has flourished, its impact on the Texan economy has grown exponentially. Twenty years ago, Houston and China traded $1.1 billion worth of goods, whereas today that number is more than $20 billion, according to the Greater Houston Partnership.

Washington, Louisiana, Illinois and a host of other U.S. states also stand to lose jobs and economic growth in export sectors as varied as agriculture, automotive, and technology.

But the hardest hit of all? The American consumer. The trade war could cost the average American family of four up to $2,300 a year, according to a report on the effect of tariffs on the U.S. economy and workers.

 

 
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