Tariffs were critical in the United States’ early years, acting as a primary revenue stream prior to the establishment of income and excise taxes. Tariffs were later used to protect nascent industries by decreasing international competition in domestic markets, acting as a revenue stream, and to negotiate trade agreements abroad.¹
The current imposed flat rate 10% duty tariffs are a significant increase from prior average duties of around 3%.¹ Though higher retaliatory rates are paused as of April 9², uncertainty surrounding reciprocal tariffs and their effect on supply chains are expected to require restructuring in varying capacities. Additionally, tariffs on U.S. service industries abroad, as well as recently proposed U.S. tariffs on ‘foreign-produced’ films could generate additional unexpected shockwaves.³
Estimates of revenue raised over the next 10 years from the new tariffs range from $2 trillion to over $5 trillion. However, these gains could be accompanied by reduced GDP and job growth.⁴⁺⁵
Georgia ranks 7th in the United States for total goods exports, worth $53.1 billion, and 6th in the nation in total trade, at $198.7 billion. Georgia’s robust service sector, led by financial and payment processing providers as well as professional service providers, carries a trade surplus of $27 billion.⁶ High tariffs, particularly in Georgia’s top trade sectors including automobiles, aerospace and medical manufacturing, alongside decreased agriculture exports, and global retaliatory measures could have significant and widespread economic consequences throughout the state.⁷
For more information on impacts to Georgia-specific industries, click
HERE to read the Georgia Chamber report The Impact of U.S.–China Trade Conflict on Georgia's Business Community.
