As the Trump administration continues to implement across the board tariffs and tease even more tariffs, Tennessee businesses, farmers, and consumers are bracing for immediate economic disruptions and higher costs. The state’s economy faces significant challenges across various sectors, including manufacturing, agriculture, and energy. 

Tariff Impact on Tennessee: By the Numbers​

Tennessee’s economy relies heavily on trade. In 2024, the state exported a record $38.9 billion in goods and supported over 876,000 jobs statewide.

Manufacturing: Manufacturing is a cornerstone of Tennessee’s economy, contributing $70 billion of value added to the economy, accounting for 13.4% of the state’s GDP and employing more than 364,000 workers. Tariffs on imported raw materials, such as steel and aluminum, can increase production costs for manufacturers, potentially reducing competitiveness and leading to decreased exports.

Agriculture: Tennessee’s rich history of farming is proudly honored with the “agriculture” on its state seal and in its state motto. With approximately 63,000 farms covering 41% of the state’s land area, it exported $2 billion in agricultural goods in 2023. Tariffs on imported inputs like fertilizer, machinery, and feed threaten to raise costs for Tennessee farmers.

Energy & Clean Tech: Tennessee’s clean energy sector is experiencing rapid growth. As of the end of 2023, the state had approximately 82,000 clean energy jobs, including 50,000 in energy efficiency, 16,000 in electric vehicles, 8,000 in storage and grid, 6,500 in renewable energy, and 1,200 in biofuels. The advanced energy sector contributes $56 billion to Tennessee’s GDP and accounts for over 420,000 jobs, nearly 15% of all jobs in the state. Tariffs on imported components for renewable energy projects can increase costs and hinder the growth of the clean energy sector.