Georgia businesses caught in crosshairs of U.S.-China trade war
Why it matters: If sky-high tariff rates announced Wednesday remain in place, many Peach State companies may no longer be able to compete in China's market, and vice versa.
Catch up quick: China announced Wednesday that it would subject most U.S. goods to 84% tariffs in retaliation for President Trump 's 104% tariffs — which Trump promptly raised to 125%.
Trump paused reciprocal tariffs for 90 days, saying dozens of countries had reached out to negotiate new trade deals. But he did not pause those against China, whom he blasted for retaliating.
Zoom in: China is Georgia's third-largest trading partner behind Canada and Mexico, according to the Office of the U.S. Trade Representative.
The state exported an estimated $4 billion in goods to China in 2023, the U.S.-China Business Council said.
What they're saying: Gov. Brian Kemp called Trump's tariffs on China "a good move," according to WSB-TV, saying "they are a big trading partner, but they also have been, as many say, ripping us off in a lot of different ways."
The intrigue: China is also a major market for Georgia's $6.7 billion poultry industry, the largest industry in the state.
The tariffs war begins while Georgia tries to prevent H5N1 outbreaks that can spread quickly and two years after China's ban on U.S. poultry caused the state's exports to plummet, the AJC notes.
The big picture:"For American farmers, who often operate on tight margins, an additional increase in export tariffs can be devastating," Georgia State University business professor Sina Golara told the outlet.
"Some small- and medium-sized farms may struggle to remain competitive, potentially forcing some to shut down."
Yes, and: On April 4, China included two Georgia-based poultry companies in a group of major U.S. agriculture firms barred from doing business in the country, citing concerns about product contamination.
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