One map shows why Trump's trade war with China could be a disaster for average Americans
- President Donald Trump's trade war with China is ongoing, with tariffs flying back and forth.
- While tariffs only apply to $34 billion worth of Chinese goods coming into the US, Trump has threatened to apply tariffs to every import from China.
- The trade war could have significant economic consequences, since China is the largest source of imports for 23 states - and in the top five of sources for 47 states.
- The China fight could also have political consequences, since 15 of the 23 states that count China as their top import source voted for Trump in 2016.
There's no clear resolution on the horizon for President Donald Trump's trade war with China, and many states in the US could soon start feeling the pain.
The Trump administration announced Tuesday a 25% tariff on $16 billion worth of Chinese exports to the US, adding to the $34 billion worth of Chinese goods already subject to tariffs. Trump has also begun to move forward with tariffs on another $200 billion worth of Chinese goods, and he has effectively threatened that every item from the country could eventually be subject to tariffs.
Tariffs act as a tax on goods coming into the country, meaning goods coming into US from China are hit with an additional 25% duty. That makes those goods more expensive, which in theory is supposed to drive US companies to buy non-Chinese products.
Given that China represented just over 21% of all imports coming into the US in 2017, an escalation of the trade war could push up prices for many goods. While the disruptions will likely be widespread, some states may face more problems than others.
According to data from the Census Bureau, China is a key source of imports for many states:
- For 23 states, China is the top source of imports.
- For 45 states, China is in the top three.
- China is among the top-five import sources for 47 states (North Dakota, Louisiana, and Delaware are the only exceptions).
- Of the 23 states that count China as their largest source of imports, Trump won 15 in the 2016 presidential election.
So far, supporters have stood beside Trump amid the trade disputes. But growing business and consumer concern, layoffs, and increased prices for goods could start to take their toll.
