The U.S.-China trade war is heating up, but its effects won’t be felt equally by all states.
China in early July retaliated against U.S. tariff hikes by imposing its own tariffs on $34 billion worth of American-made products. In August, it announced tariffs on an additional $16 billion worth of goods.
Among them, China boosted its tariffs on U.S.-made cars to 40 percent. At high risk of an economic impact are Southern auto-making states such as South Carolina, where BMW produces X5 and X6 SUVs that are exported to China, and Alabama, where Mercedes-Benz makes its GLE-Class SUV for export.
Also at risk are states involved with producing or transporting soybeans and pork, analysts say, although President Donald Trump plans to direct $12 billion in aid to farmers hurt by the tariffs. The president maintains the tariffs he’s imposed will help bring an end to trade policies that put U.S. farmers and manufacturers at a disadvantage.
Here are the 10 states the U.S. Chamber of Commerce says are most at risk from China’s retaliatory tariffs already in place, along with the states’ estimated total trade and top exports to China, and federal estimates of the tariffs’ economic impact on the states.
10. Ohio, $826 million
China is Ohio’s third-largest export market, behind Canada and Mexico.
Hardest-hit products: soybeans; vehicle gear boxes; and aluminum waste and scrap
Number of American jobs supported by Ohio’s exports to China: 30,900 (2016)
9. Michigan, $842 million
China is also Michigan’s third-largest export market, behind Canada and Mexico.
Hardest-hit products: passenger vehicles; vehicle gear boxes; and aluminum waste and scrap
Number of jobs supported by Michigan’s exports to China: 29,200
8. Kentucky, $917 million
China is Kentucky’s fourth-largest export market, behind Canada, the United Kingdom and France.
Hardest hit products: passenger vehicles; and aluminum waste and scrap
Number of jobs supported by Kentucky’s exports to China: 15,300
7. Texas, $1.4 billion
China is Texas’ third-largest export market, behind Mexico and Canada.
Hardest hit products: grain sorghum; cotton; and aluminum waste and scrap
Number of jobs supported by Texas’ exports to China: 74,700
6. Alabama, $2.4 billion
China is Alabama’s second-largest export market, behind Canada.
Hardest hit products: passenger cars; and soybeans
Number of jobs supported by Alabama’s exports to China: 17,400
5. South Carolina, $2.6 billion
China is South Carolina’s top export market.
Hardest-hit products: passenger vehicles; and vehicle gear boxes
Number of jobs supported by South Carolina’s exports to China: 34,800
4. Illinois, $2.1 billion
China is Illinois’ third-largest export market, behind Canada and Mexico.
Hardest-hit products: soybeans; passenger vehicles; and grain sorghum
Number of jobs supported by Illinois’ exports to China: 53,800
3. California, $4 billion
China is California’s third-largest export market, behind Mexico and Canada.
Hardest hit-products: electric motor vehicles; and other passenger vehicles
Number of jobs supported by California’s exports to China: 121,600
2. Washington, $5.2 billion
China is Washington’s top export market.
Hardest-hit products: soybeans; passenger vehicles; wheat and meslin (a mixture of wheat and rye)
Number of jobs supported by Washington’s exports to China: 64,500
1. Louisiana, $5.7 billion
China is Louisiana’s top export market.
Hardest-hit products: soybeans; corn; grain sorghum
Number of jobs supported by Louisiana’s exports to China: 15,550
How do China’s tariffs affect your state or industry? Share your thoughts and experiences in comments below or on our Facebook page.
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