Tariffs Briefing V
MAY 15, 2025 - LATEST TARIFF PAUSES AND NEW TRADE DEALS
GEORGIA CHAMBER OF COMMERCE
Latest Tariff Pauses and New Trade Deals
Executive Summary
The 90-day pause in escalating U.S.–China tariffs has lowered bilateral tensions, offering the potential for short-term economic relief for Georgia. Meanwhile, a proposed U.S.–U.K. trade deal expands access to American goods and services, potentially opening doors for some of Georgia’s most lucrative sectors, including poultry, aerospace, and professional services.
Additionally, a newly negotiated U.S.–Saudi Arabia trade and investment pact includes major energy, defense, and infrastructure commitments, creating downstream opportunities for Georgia’s aerospace, construction, and tech sectors.
U.S.–China Tariff Reduction
On May 12, 2025, the U.S. and China agreed to a 90-day pause on escalating tariffs. The U.S. lowered its average tariff on Chinese goods from 145% to 30%, while China reduced its retaliatory duties from 125% to 10%. The truce aims to foster negotiations between the U.S. and China, but the pause is temporary, and still results in a higher rate on imports from China than the previous average of 3%.
Georgia’s agricultural exporters stand to benefit immediately as China is a key buyer of Georgia’s agricultural products, including poultry, pecans, and cotton. These developments are positive; however, long-term stability is required for sustained industry growth.
Georgia’s ports are also affected. Ports around the country saw container traffic swing dramatically during tariff escalations, with volumes jumping in March-April 2025 due to import front-loading, then decreasing when 145% tariffs took effect. The tariff pause is expected to drive a new surge in container throughput as businesses seek to capitalize on the temporary reprieve. This volatility complicates logistics planning while also underscoring Georgia’s strategic importance as a trade and logistics hub.
U.S.–U.K. Trade Agreement
Announced on May 8, 2025, the general terms of the U.S.–U.K. trade agreement lower average U.K. tariffs on U.S. goods to 1.8% from 5.1% and eliminate select non-tariff trade barriers. The deal will grant U.S. agriculture, aerospace, and industrial exporters increased access to the U.K. market. In return, the U.S. maintains a 10% baseline reciprocal tariff on U.K. imports.
The U.K. is a major trade partner for Georgia companies, particularly in service industries and high-tech goods. Additionally, tariff rates on steel imports from the U.K. will decrease to 0%, and ethanol imports to the U.K. from the U.S. will drop to 0%. Section 232 tariffs on U.K. autos are also amended, whereas now the first 100,000 vehicles imported into the U.S. are subject to a 10% duty rate, as opposed to the standard 25%.
White House officials also announced that the deal allows for U.S. firms to engage in U.K. government procurement, and includes favorable provisions for I.P., labor, and environmental standards. These changes could bolster demand for Georgia-based professional services and tech exports.
U.S.–Saudi Arabia Trade and Investment Deal
On May 13, 2025, the U.S. and Saudi Arabia signed a broad $600 billion investment and trade agreement. The deal includes:
$20 billion in Saudi-funded U.S. AI data centers and energy infrastructure
$142 billion in U.S. defense exports
$14 billion in energy equipment exports
$5 billion in aerospace venture capital
$2 billion in U.S. infrastructure services exports
Potential allocated funding from the deal could bolster key economic sectors in Georgia. The aerospace sector may see new orders or subcontracting from Saudi defense procurements, and energy and utility firms could benefit from joint innovation projects. Infrastructure firms based in Georgia, or with significant operations here, may have the opportunity to participate in Saudi-funded megaprojects.
Saudi capital may also flow to Georgia-based tech and cloud computing firms through the agreement’s $80 billion in technology partnership commitments. Georgia’s life sciences and healthcare sectors could benefit from enhanced bilateral cooperation in medical supply manufacturing and biotech investment.
Strategic Outlook for Georgia
To stay competitive, Georgia businesses should diversify export markets and supplier bases. Countries like Vietnam, Mexico, and Canada are increasingly important trade partners. Companies should monitor the status of trade negotiations and rulings while also strengthening internal compliance, logistics resilience, and international market development.
Georgia Chamber Recommendations
Tracking the legal outcome of the tariff challenge
Leveraging the U.S.–UK and U.S.–Saudi trade and investment agreements
Assessing temporary tariff reductions on Chinese goods and their impact on your supply chain
Continuing to engage with the Georgia Chamber and federal officials on trade policy
While the global trade environment remains volatile, Georgia’s strategic position as a logistics hub, export leader, and innovation center equips the state to withstand near-term disruptions. By adapting to new trade rules, exploring emerging markets, and advocating for smart policy, Georgia can sustain its economic growth through 2025 and into the next 25 years and beyond.
Sources
Evans, B. (2025, April 14). Tariffs add pressure to Georgia’s hard-hit farms. State Affairs. https://pro.stateaffairs.com/ga/politics/georgia-tariffs-agriculture-chicken-peaches
Tariffs pose threats to many Georgia farmers. Georgia Farm Bureau. (2025, February 13). https://www.gfb.org/news/ag-news/post/tariffs-pose-threats-tomany-georgia-farmers
More, R., & Baertlein, L. (2025, May 12). Container shippers win China-US tariff reprieve, await volume rebound | Reuters. Reuters. https://www.reuters.com/ business/autos-transportation/ocean-shipping-firm-welcomes-china-us-tariffreprieve-2025-05-12/
Fact Sheet: U.S.-UK Reach Historic Trade Deal. (2025b, May 8). The White House. Retrieved from https://www.whitehouse.gov/fact-sheets/2025/05/factsheet-u-s-uk-reach-historic-trade-deal/.
Fact Sheet: President Donald J. Trump Secures Historic $600 Billion Investment Commitment in Saudi Arabia. (2025a, May 13). The White House. Retrieved from https://www.whitehouse.gov/fact-sheets/2025/05/factsheet-president-donald-j-trump-secures-historic-600-billion-investment-commitment-in-saudi-arabia/.
