Tariffs Briefing
APRIL 2025 - NEW U.S. TARIFFS + POTENTIAL GEORGIA IMPACT
GEORGIA CHAMBER OF COMMERCE
Tariffs Briefing: April 2025 – New U.S.
Tariffs +
Potential Georgia Impact
This briefing outlines the new tariff measures announced by the Trump Administration on April 2nd, 2025, and analyzes their potential impact in Georgia. The measures mark a significant shift in U.S. trade policy – including across-the-board import tariffs and targeted duties on specific goods – with implications for Georgia’s small businesses, manufacturers, ports, construction firms, and agricultural exporters.
Georgia’s International Trade Overview
In 2024, Georgia set new records for international trade activity, with Georgia ranking 7th in the nation for net exports. Georgia exported approximately $53.1 billion in goods and importing roughly $145.6 billion. Georgia-grown, -made, and -produced goods reached 291 unique global markets. Additionally, Georgia exported around $31 billion in services (latest available: 2023), underscoring the state’s strong service sector.
Key Export and Import Commodities
Top
Exported Goods
Civilian aircraft & aerospace components
Motor vehicles
Computers & data processing equipment
Telephone & communications devices
Medical devices & instruments
Top Trading Partners
Top Imported
Motor vehicles
Goods
Automotive parts and components
Computers & electronics
Telecommunications equipment
Pharmaceutical products
Overview of Announced Tariff Measures
President Trump has imposed sweeping new tariffs as part of a strategy to grow U.S. manufacturing and press trading partners to reduce their trade barriers.
Countries around the world are responding in one of two ways. Some are promising to increase tariffs on U.S.-produced goods, while others are considering lowering existing tariffs as per the President’s argument.
Key elements of the announcement include:
Baseline 10% Tariff: A 10% import tax on all goods from all countries was declared, ending the prior era of near-free trade. This baseline tariff is meant to apply universally, generating revenue and giving U.S. producers a price advantage in the domestic market. The White House estimates the tariffs will raise about $100 billion annually in taxes and encourage more factories to open in the U.S.
“Reciprocal” Tariffs on Trade Surplus Nations: In addition to the 10% global rate, higher tariffs are levied on countries that the administration holds to maintain steep tariffs or trade surpluses with the U.S. (the administration calls these reciprocal tariffs). For example, imports from the European Union, Japan, and South Korea now face roughly 20% tariffs China is subject to a 34% tariff on its goods, and Vietnam – identified by the Trump administration as having one of the highest trade barriers – faces a 46% tariff
These rates were “tailored based on how unfairly” each country is perceived to treat U.S. exports. Notably, officials said these published rates are about half of the levels originally calculated by economists.
25% Tariff on Foreign Automobiles & Parts: A 25% tariff on all imported cars and auto parts was put in place, a measure originally announced in late March and took effect at midnight following the latest announcement. This represents a sharp increase from the previous import duty (2.5% on cars under WTO rules) and stands on top of the baseline and reciprocal rates.
Steel & Aluminum Tariffs: Steel and aluminum imports already subject to 25% tariffs last month will be excluded from reciprocal tariffs. These measures target metals to support domestic steel and aluminum producers, amid claims of global overcapacity.
Tariffs on Canadian & Mexican Goods (Conditional): Imports from Canada and Mexico that do not qualify under USMCA or do not meet additional duties under previous “border enforcement” executive order provisions will be subject to a 25% tariff. This continues the administration’s link of trade with immigration and security issues – a move requiring Canada and Mexico to tighten border controls or face hefty duties on their exports to the U.S. The
Trump administration has stated once the neighboring countries satisfy the U.S. demands on border enforcement, those 25% tariffs will be removed, and North American goods will revert to the baseline tariff rates. USMCA compliant goods are not subject to these tariffs.
Threatened Tariffs on Lumber and Pharmaceuticals: The administration also warned of potential tariffs on imported lumber and pharmaceutical products if trading partners do not address certain disputes. Lumber (particularly from Canada) was singled out due to longstanding trade frictions in softwood lumber. Pharmaceutical imports (such as generic drugs or medical ingredients) could also be targeted in future rounds. While no immediate tariff was set on lumber or pharma , these sectors are on watch – adding uncertainty for industries reliant on Canadian wood or overseas pharmaceuticals. •
Summary
Business analysts warn that such broad tariffs “risk higher consumer prices” and could “trigger broader trade wars” while some argue there are opportunities for new trading partners. Either way, the stage is set for a new trade landscape – one with both opportunities (for import-competing industries) and challenges (higher costs and retaliation risks) that Georgia businesses must carefully navigate.
It’s important to note that certain countries are exempt from these tariffs. Notably, Russia, Belarus, Cuba, and North Korea are not subject to the new tariffs. The White House explained that existing sanctions and minimal trade volumes with these nations rendered additional tariffs unnecessary.
Georgia Industry Impact
Automotive & Auto Parts Manufacturing
On March 26th, President Trump issued an executive order imposing 25% tariffs on imported automobiles and select automobile parts to go into effect April 3rd. This tariff is in addition to any other applicable tariffs to the goods in question. The 25% tariff on imported vehicles and parts is poised to significantly impact Georgia’s automotive industry. The tariffs could have mixed effects on this sector:
Higher Production Costs: Auto manufacturers in Georgia may face rising costs if they rely on imported components. Many assembly plants import parts (engines, electronics, etc.).
A 25% duty on foreign parts raises input prices. National industry experts express concern that most vehicle prices will increase under a 25% parts tariff. This could dampen auto sales and slow growth in the automotive sector, at least in the short term.
Automobiles and the United States-Mexico-Canada Agreement (USMCA): For automobiles that qualify for preferential tariff treatment under the USMCA, importers may submit documentation to the Secretary of Commerce identifying the amount of “U.S. content” in each model and approve imposition of tariffs for the non-U.S. content. Non-U.S. content is calculated by subtracting the value of the U.S. content in an automobile from the total value of the automobile.
Automobile Parts and the USMCA : The 25% tariff does not currently apply to auto parts qualified for preferential treatment under USMCA. However, within 90 days of the date of the proclamation, the Secretary of Commerce is instructed to establish a process to include auto parts within the scope of the tariff.
Trade Exposure and Retaliation: Georgia builds cars, while also serving as a key import and export market for vehicles. The Port of Brunswick handles exports of American-made vehicles to global markets and is now the busiest roll-on/roll-off port in the United States. If other countries retaliate with tariffs on U.S.-made vehicles, demand for Georgia’s auto exports could soften. For instance, a reciprocal move by the EU to tax U.S.-made cars would make it harder for Georgia-built vehicles to compete abroad. Likewise, imports are likely to be impacted by these efforts. Automakers in Georgia will need to monitor foreign response and possibly pivot to domestic markets if export conditions deteriorate, which would lessen future investment in our state.
In summary, Georgia’s automotive and parts manufacturers face higher costs and market uncertainty under the new tariffs, but they might also gain a home-market advantage. Much will depend on how trading partners respond and whether the promise of new U.S. auto investment materializes to offset any decline in imported vehicles.
Steel, Aluminum & Construction Manufacturing
The new tariffs on steel and aluminum imports will have a direct effect on Georgia’s construction and manufacturing businesses that rely on these raw materials. Georgia’s economy includes manufacturers of machinery, aerospace products, building materials, and of course a robust construction industry – all of which use steel or aluminum to some extent. Key impacts to anticipate:
Higher Materials Costs: Tariffs on imported steel and aluminum will likely drive up the cost of these materials domestically. Even companies that buy from U.S. steel/aluminum mills could see price increases, as domestic suppliers often raise prices when import competition decreases. A Georgia State University economist warned that “tariffs on steel and aluminum…are going to impact us” by making many goods pricier. For example, construction firms will face higher costs for structural steel, rebar, and aluminum components when building factories, warehouses, or commercial buildings. Similarly, manufacturers will pay more for specialized metals. These rising input costs could squeeze profit margins for manufacturers and builders, potentially slowing project timelines or forcing price adjustments for end customers.
Potential Gains for Local Metal Producers: On the upside, domestic steel and aluminum producers may benefit from reduced foreign competition. Any Georgia-based facilities could see increased orders as buyers seek U.S.-sourced metal to avoid tariffs. This could stimulate local production and jobs in metalworking industries. For instance, Georgia has several steel fabrication facilities and recyclers that might ramp up output if imports from say, Europe or Asia, become prohibitively expensive. Additionally, industries like scrap metal recycling or suppliers of raw materials might see higher demand. These benefits, however, depend on the capacity of U.S. producers to meet demand without significant price inflation. If domestic output falls short, some manufacturers might still struggle to secure enough steel/aluminum at reasonable prices.
Construction Project Impacts: Infrastructure and development projects in Georgia – from road/ bridge construction to new commercial real estate – will feel the ripple effect of costlier steel and lumber (with lumber possibly facing tariffs soon as well). Already, builders are warning that prices of construction inputs like lumber are rising. A surge in material costs could make some projects economically unfeasible or push developers to delay investments. Contractors may need to add escalation clauses into contracts to account for tariff-driven price volatility. Public sector projects (schools, transportation, etc.) could see budget overruns. The overall construction sector in Georgia may experience slower growth if tariffs significantly raise material costs, although continued strong demand (and possibly federal infrastructure spending) might offset this to some degree.
In summary, steel and aluminum tariffs present a classic trade-off: they offer potential upside for U.S. metal producers but at the expense of higher costs for downstream industries. Georgia companies should conduct scenario planning – e.g. locking in supplies at pre-tariff prices where possible, exploring alternative materials or suppliers, and communicating with clients about price impacts. The Georgia Chamber will advocate for measures to mitigate any severe cost impacts on local businesses, such as temporary relief for critical inputs not available domestically.
Agricultural Exports & Import Costs
Georgia’s large agriculture sector – encompassing everything from row crops to poultry and wood products –faces indirect but important impacts from the new tariffs. Georgia’s agricultural sector significantly contributes to the state’s export economy.
Key agricultural exports include:
Poultry (primarily chicken): Georgia is a leading exporter of poultry, shipping extensively to international markets.
Cotton: A major commodity exported notably to China and other textile-producing nations.
Peanuts: Exported globally, with major markets in Canada, Mexico, and the European Union.
Pecans: Primarily exported to China, Canada, India, and various European countries.
The timber and forestry sector also plays a critical role:
Softwood Lumber: Exported mainly to countries such as China, Canada, and Europe, helping sustain Georgia’s forestry industry.
Wood Pulp and Paper Products: Key exports that drive substantial economic activity and employment within the state.
Agricultural Exports & Import Costs: Economic Impact
The export of agricultural products and timber significantly bolsters Georgia’s economy by generating billions in revenue and supporting thousands of jobs. Agricultural exports strengthen rural economies, particularly benefiting farmers and related industries. The timber industry, one of the largest in Georgia, benefits from global demand for construction and packaging materials, directly contributing to economic growth and employment in rural and coastal areas. While the announced tariffs mostly target industrial goods, the ensuing trade responses and market shifts will affect both ag exports and the cost of certain imports:
Risk of Retaliatory Tariffs on Georgia Exports: Major Georgia agricultural exports could become targets if our trading partners retaliate against the U.S. tariff actions. In past trade disputes, markets including China and the EU have imposed tariffs on American farm goods to exert political pressure. Georgia’s staple products are vulnerable. For instance, pecans, cotton, peanuts, soybeans, and poultry have all been hit with tariffs in previous rounds of U.S.-China trade tensions. In 2019, China imposed retaliatory tariffs up to 25% on these very products, directly hurting Georgia farmers. A similar pattern now is conceivable – e.g. Europe could tax U.S. peanuts, or China could further restrict imports of pecans and cotton – making Georgia’s exports less competitive overseas. This comes at a time when farm incomes are already under strain from input costs and past extreme weather events. Reduced export demand would mean lower prices paid to Georgia farmers for their crops, affecting rural economies.
Commodity Price Uncertainty: Even without explicit retaliation, the tariffs contribute to global market uncertainty that can depress commodity prices. If the world economy slows or if major importers shift sourcing (for example, a foreign buyer of cotton finds a non-U.S. supplier to avoid potential U.S. trade trouble), Georgia growers might see gluts of their products and lower prices for products like cotton and timber. On the flip side, if the tariffs eventually force trading partners to lower their own barriers (the administration’s ultimate goal), Georgia products could gain favorability abroad – but such benefits, if they occur, will likely be in the long term and are far from guaranteed in the current climate.
Higher Costs for Farm Inputs and Food Imports:
Tariffs and related policies will also raise the cost of certain imports important to Georgia’s agri-food sector. For example, many fruits and winter vegetables are imported – Georgia consumers or grocers sourcing produce from Mexico or South America may face higher prices due to the baseline 10% tariff. Imports of farm equipment or parts (tractors from Europe or Japan, irrigation systems, etc.) could become more expensive, increasing operating costs for farmers. Additionally, fertilizers and agricultural chemicals are globally traded; any tariffs on chemical imports (some fall under industrial categories from countries like China) could trickle down to farm input prices. Even the threatened pharmaceutical tariffs might affect livestock healthcare costs if veterinary drugs are imported. Georgia’s food processing industry, which utilizes imported ingredients (including spices and flavorings), will likewise see cost inflation. Consumers could notice
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higher prices for certain food items that are imported or use imported inputs – adding to inflation concerns.
Forestry and Lumber: A unique case is Georgia’s timber industry. If a tariff on imported lumber (primarily Canadian softwood) is enacted as threatened, U.S. lumber prices would rise. This would hurt construction companies (as noted) but could help Georgia’s forestry sector in theory, by making domestically harvested lumber more competitive. Past lumber disputes have shown that higher lumber costs can reduce overall demand, which in turn can limit how much benefit timber growers actually see. Thus, forestry stakeholders should watch the lumber tariff decision closely: it could provide a boost to Georgia wood producers, but with the caveat of straining relations with our Canadian buyers and raising home-building costs.
Overall, Georgia’s agriculture and forestry community should brace for volatile export conditions and input prices. Diversifying export markets (finding new buyers in regions not engaged in tariff battles) and cutting costs will be key strategies for Georgia businesses. The Georgia Chamber will coordinate with our agricultural partners to keep farmers informed and to advocate for federal assistance such as export promotion or tariff relief programs if the agricultural sector suffers undue harm. Our state’s growers have weathered past challenges and are adaptable – but they will need support to navigate this new trade environment.
Port Logistics
Georgia’s ports – critical hubs for both import and export logistics – will feel the effects of the tariff changes on multiple fronts. The Port of Savannah, the nation’s fourth-busiest container port, and the Port of Brunswick, the nation’s busiest port for automobile imports/exports, are engines of the state’s economy, handling a tremendous volume of global cargo. Key considerations include:
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Automobile Import/Export Traffic: Brunswick stands out as the #1 U.S. roll-on/roll-off port, handling about 900,000 units of cars and heavy equipment in 2024 , approximately 75% of which were imports. A 25% tariff on imported cars could sharply reduce auto import volumes through the Port of Brunswick if overseas manufacturers ship fewer vehicles. Fewer imports would mean lower workload for longshoremen, processors, and related logistics businesses in the Brunswick area. On the export side, Brunswick also handles hundreds of thousands of U.S.-made vehicles (many from Georgia and the Southeast) heading to overseas markets; those could face retaliation abroad, as mentioned, which might indirectly affect port throughput.
Container Cargo and Global Trade Flows: Savannah, as a major container port, could see shifts in cargo volumes due to the broad 10%+ tariffs on imports. If U.S. importers cut back on orders from Europe or Asia (due to higher costs), container throughput at the Port of Savannah could decelerate or even contract for certain commodities. On the export side, Savannah handles large volumes of Georgia exports in virtually every industry from poultry to paper products to manufactured goods. Should key export destinations impose retaliatory tariffs (for instance, Europe or China on U.S. goods), some of those exports could decline, affecting outbound container traffic. However, one perspective is that demand for U.S. goods (especially if foreign supply becomes pricier under tariffs) might sustain export volumes – a dynamic that could keep the Port of Savannah busy even as imports face headwinds. In the near term, supply chain adjustments such as front-loading shipments before tariffs and then potential lulls may create volatility at the port.
Logistics and Warehousing Operations: The broader logistics sector (warehouses, trucking, and rail connected to the ports) will likewise need to adapt to the new global trade environment. Higher import costs may lead to inventory strategy changes – e.g. some importers have been stockpiling goods at high volumes in preparation of future tariffs, which can temporarily increase port traffic and warehouse demand. If tariffs persist over the long term, businesses might diversify sourcing (importing from alternate countries with lower reciprocal tariffs) or shift to domestic suppliers, which could alter the mix of goods flowing through Georgia’s ports. Logistics firms should be ready for swings in volume and possibly new customs compliance requirements as the tariff regime grows more complex. •
Despite these challenges, Georgia’s ports enter this period from a position of strength. Savannah was recently the fastest-growing port on the East Coast , and Brunswick has achieved record auto volumes. Major infrastructure investments are ongoing, expanding capacity at both ports. These enhancements will help the ports remain competitive and efficient. The outlook for Georgia’s port logistics sector will depend on how global trade partners react and how quickly any new trade deals or adjustments can stabilize the rules. The Georgia Chamber will continue working with port authorities to ensure our logistics industry weathers these tariff-induced shifts with minimal disruption.
Economic Impact
New reciprocal tariffs present a challenge for virtually every business as they work to evaluate and potentially restructure supply chains, undermining years of long-term strategic investment.
In the long term, select tariffs could bring new investment to the state or open additional markets for small businesses, but this hinges on greater global factors that are unpredictable, creating uncertainty for businesses.
Supply chain networks and key trade-off points, such as Georgia’s coastal and inland ports, may face significant challenges as some consumers and producers attempt to stockpile, and as businesses look to jointly re-organize supply chain structures.
Tariffs on specific imports, especially metals and manufacturing components, are reported to significantly impact Georgia and U.S. based company’s margins and may push smaller companies out of profitability entirely.
Key Georgia industry products, such as agricultural exports, may become global targets if retaliatory climates escalate and hold.
The Georgia Chamber recommends our members take a proactive stance in the face of these changes and will continue to advocate for the members of our business community. Despite the headwinds, Georgia’s economy remains dynamic and resilient. By staying informed and adaptable, the state’s business community can mitigate risks and even find growth opportunities in the new trade landscape.
Conclusion
In summary, the 2025 tariff announcements represent a major shift in U.S. trade policy, with a blanket 10% tariff and numerous targeted tariffs. For Georgia businesses, these measures are a double-edged sword. Protective tariffs may benefit certain producers (steelmakers, some manufacturers) and could attract new investment (e.g. auto plants) to the U.S. However, higher costs and foreign retaliation are real concerns, threatening to raise prices for businesses and consumers while hindering Georgia’s export growth. The impact will vary by industry: our automotive sector must adjust to new supply chain economics; ports and logistics firms may see shifting trade flows; construction and manufacturing firms face cost inflation; and farmers confront an uncertain export outlook.
The Georgia Chamber recommends our members take a proactive stance in the face of these changes. This includes reviewing contracts for price adjustment clauses, exploring alternative sourcing or markets, and staying engaged with policymakers. We will continue to provide updates and resources as the tariff policies evolve. Our Chamber will also voice the concerns of Georgia businesses to federal officials, advocating for fair trade that opens markets without unduly burdening our companies and consumers. Our new Global Business Subcommittee will take the lead in addressing individual policies and tariffs.
Despite the headwinds, Georgia’s economy remains dynamic and resilient. By staying informed and adaptable, the state’s business community can mitigate risks and even find growth opportunities in the new trade landscape. Please reach out to the Georgia Chamber with any specific questions or for assistance in navigating these tariff impacts. We are here to support Georgia businesses through these changes.
Sources
Trump announces new tariffs, the highest import taxes since the 1800s
Georgia lawmakers have mixed emotions over new Trump tariffs announced
Wednesday – WSB-TV Channel 2 - Atlanta
Alexus Cleavenger’s Profile | WJAX-TV (Jacksonville, FL) Journalist | Muck Rack
Georgia farmers caught in the Chinese tariff fight
Brunswick port records historical month for autos and equipment | News | Automotive Logistics
Georgia economists expect inflation from tariffs and slow job growth – WABE
Georgia farmers caught in the Chinese tariff fight
https://www.wsj.com/livecoverage/trump-tariffs-trade-war-stock-market-04-02-2025/card/imported-steel-and-aluminum-spared-from-more-tariffs-VZb7XQXhfkSrh6DDICgl_
Georgia lawmakers have mixed emotions over new Trump tariffs announced
Wednesday – WSB-TV Channel 2 - Atlanta
Tables of reciprocal tariff rates. Credit: The White House
Georgia.org
USTR.gov
Uschamber.com
Trade.com
Georgia Sets Export Record With Trade Tumult on the Horizon - Global Atlanta
Georgia’s foreign imports and exports increase for fourth straight year