Tariffs Briefing
APRIL 11, 2025 - THE IMPACT OF U.S.–CHINA TRADE CONFLICT ON GEORGIA’S BUSINESS
COMMUNITY
GEORGIA CHAMBER OF COMMERCE
Tariffs Briefing: April 11, 2025 – The Impact of U.S.–China Trade Conflict on Georgia’s Business Community
Executive Summary
The U.S.–China trade conflict, has resulted in dramatic tariff increases with President Donald Trump announcing the United States would impose a 145% tariff on Chinese imports. This came after China retaliated to prior U.S. tariff increases by raising its tariffs on U.S. goods to 84%, effectively stalling bilateral trade. To date, retaliation continues and China has since announced a further hike to 125%. While global equity markets saw short-term gains due to a broader tariff pause on other countries, volatility remains high as investors attempt to interpret rapidly evolving trade policy changes from Washington D.C., Beijing, and other world capitals. U.S.–China tensions pose significant risks for Georgia’s industries, including the globally connected agriculture, manufacturing, and service sectors, which comprise a significant portion of the state’s economy.
Key Developments
TARIFF ESCALATION:
U.S. tariffs on Chinese goods increased to 104% on April 7th, after which China responded with an 84% tariff on U.S. goods. As of April 9th, the U.S. landed on a 145% tariff on Chinese imported goods, and the Chinese government has since reported further tariff hikes.
Other countries and trade blocs, such as Canada and the European Union, have imposed tariffs averaging 25% on consumable goods such as wine and bourbon. Canada specifically retaliated with steel and aluminum tariffs as well.
TEMPORARY RELIEF ELSEWHERE:
On April 9th, the U.S. announced a 90-day pause on reciprocal tariffs targeting other countries.
TRADE POLICY CONFUSION AND ECONOMIC UNCERTAINTY:
The tariff spike follows weeks of backlash from corporate and industry leaders.
Uncertainty continues for specific goods such as auto components, pharmaceuticals, and minerals, but China continues to face the most scrutiny from the Trump Administration, building on tariffs enacted during President Trump’s first term. The U.S. appears to be doubling down on a long-term strategic approach to decouple from Chinese markets.
Implications for Georgia’s Business Ecosystem
Exporters and Agricultural Producers
Georgia’s export economy – worth more than $49 billion in 2023 - is directly exposed to trade disruptions. Top export categories include aerospace, poultry, agricultural products, and machinery. China has consistently ranked as one of Georgia’s top 5 trading partners, primarily due to the retail import market. Higher tariff rates on goods from America may leave Chinese importers to source from elsewhere, lowering demand for Georgia goods.
Poultry exports alone accounted for over $900 million of trade value in 2023, with China being a significant market.
Tariff retaliation could reduce demand and revenues for producers in rural counties.
Port Logistics and Freight
The Ports of Savannah and Brunswick are among the busiest in the U.S., serving as primary gateways for imports and exports with China and other major trading partners. Disruptions or fluctuations in cargo volumes affect warehousing, freight, and customs-dependent jobs across coastal Georgia.
If China reroutes trade through Vietnam and India, as suggested, Georgia’s ports may see reduced Chinese volumes even as transshipped goods rise.
The end of duty tariffs on goods shipments worth less than $800 (de minimis exemption) from China and Hong Kong will also alter how companies handle logistics moving forward. This could impact port cargo flow and needs, creating additional challenges for logistics and customs professionals.
Georgia-Based Global Firms
Major Georgia employers with global supply chains face mounting uncertainty. China’s potential countermeasures may target Georgia companies operating in China through regulatory action, licensing delays, or restricted market access.
Where China May Go Next
According to analysts cited in Barron’s, China may respond in the following ways:
Export Support: The Chinese government could subsidize loans and provide tax rebates to Chinese exporters to counter U.S. tariffs. This is a traditional strategy for government-driven economies.
Currency Adjustment : Even a minor devaluation of Chinese currency may boost exports, but doing so could further frustrate Washington D.C.
Treasury Diversification: Continued reduction in U.S. Treasury holdings and movement toward gold and neutral assets, which could continue to impact the U.S. bond market.
Corporate Pressure Tactics: Administrative burdens on American firms from Chinese officials via audits, restrictions, and licensing challenges are of growing concern for Georgia-based firms.
New Trade Partners: China is moving quickly to establish new trading partners and may
Strategic Considerations for Georgia
The Georgia Chamber recommends policymakers, and our members consider the following:
Scenario Planning: Businesses should assess supply chain vulnerabilities, particularly with East Asia, and consider alternate sourcing strategies.
Exercise Patience: Businesses should continue focusing on long-term business goals to avoid overreactions based on daily news cycles. Continue to engage with the Georgia Chamber of Commerce and federal partners to get the most up-to-date information.
Global Trade Partnerships: Expand and reinforce trade ties with other global trading partners to diversify market exposure.
Rural Impact Mitigation: Support rural producers and exporters affected by reduced access to Chinese markets.
Federal Engagement : The Georgia Chamber will remain in continual conversation with Georgia’s congressional delegation, partners including the U.S. Chamber of Commerce and national industry organizations to advocate for free and fair global trade policies. We also urge our members to contact their federal elected officials and explain how tariff policies will impact their business.
Conclusion
Georgia’s economy remains robust, providing a strong foundation for weathering market downturns and uncertainty in the global trade sector. While the current trade war’s trajectory remains unclear, Georgia’s unique position as a logistics hub and export leader demands proactive engagement and protection from retaliatory measures.
It is our hope that new markets are opened for Georgia Grown and Georgia-made products around the world if new trade deals are negotiated. The Georgia Chamber will continue monitoring policy shifts and offer tools, insights, and advocacy to ensure businesses across the state remain competitive, informed, and resilient.
Sources
• Barron’s: Trump Isn’t the Only One with Leverage in the Trade War, Reshma Kapadia, April 2025
• U.S. Census Bureau, Foreign Trade Statistics
• Georgia Department of Agriculture
• Georgia Department of Economic Development
• Georgia Ports Authority Annual Report, 2024
• U.S. Department of Agriculture Export Data, 2023
• American Enterprise Institute
• Gavekal Research
• TS Lombard
All facts and figures are current as of the morning of April 11, 2025. Some information may have changed since the date and time of publication.
