By Sundi Rose
February 11, 2025 6:00 AM
As the trade war between the U.S. and China gains momentum, Georgia consumers are starting to feel the effects in all areas of the state’s economy. Whether it’s food, cars, clothes or electronics, prices are on the rise.
What is the current tariff situation?
The implementation of the tariffs has been a complicated and ongoing evolution, and can be hard to stay up to date, but here’s what to know to get a sense of what is happening currently.
As of Monday, Feb. 10, 2025, the current tariff situation between the United States and China is as follows:
U.S. Tariffs on Chinese imports
A 10% additional tariff on all imports from China went into effect on Tuesday, Feb. 4, 2025.
This tariff is applied on top of any existing duties
China’s retaliatory tariffs on U.S. imports
China imposed retaliatory tariffs on certain U.S. goods, effective Monday, Feb. 10, 2025
15% tariff on U.S. coal and liquefied natural gas imports
10% tariff on U.S. crude oil, agricultural machinery and large-engine vehicles
Impact on the pecan industry
The pecan industry is a significant contributor to Georgia’s economy, contributing over $1.9 billion to the state’s livelihood and supporting 13,000 jobs.
The tariff measures include a 52% levy on U.S. pecan exports, significantly higher than the 7% rate applied to competitors from Mexico and South Africa.
Mark Sanchez, CEO of Lane Southern Orchards in Peach County, told CBS affiliate WMAZ he’s seen a dramatic decrease in pecan exports to China. “Containers we load for Chinese export now are probably in the 20 to 30% range of what we did prior to 2017,” Sanchez said.
This will make pecans more expensive and harder to come by, which could be a big problem for a lot of Georgia workers (and home cooks).
Impacts on other agricultural industries
Other key Georgia exports are feeling the pressure.
Industries likely to be affected include:
Poultry
Peanuts
Cotton
Sorghum
Soybeans
Wheat
Impact on the machinery and equipment industries.
Outside the food and fiber arena, several notable companies in Georgia manufacture or sell agricultural equipment, and their prices are on the rise, too.
This will make the machinery more expensive and create a ripple effect throughout the related industries and fields.
A few companies likely to feel the changes include:
Loughridge Equipment that offers brands like Massey Ferguson, Hesston, Sunflower, KUHN, KMC and Lewis Brothers.
Specialty Sales Co.
Rome Plow Equipment Co, LLC
Kelley Manufacturing
Yancey Bros. Co
Cain Equipment
Impact on retailers and consumers
Georgia farmers are not only contending with reduced exports but also facing increased costs for goods and services needed to run their businesses. Georgia businesses and consumers rely heavily on goods imported from China, so the effects are far-reaching.
Some of the most popular items from China include:
Electronics and computers
Vehicles and auto parts
Plastics
Furniture, lighting, signs and prefabricated buildings
Iron and steel products
Rubber products including tires
Fast fashion and goods
The new tariffs and the closure of the “de minimis” loophole are expected to significantly impact retailers in Georgia, as well as across the U.S.
Here’s how:
Higher prices for consumers: The “de minimis loophole” previously allowed goods under $800 to bypass import taxes, but since Trump rolled it back, fast fashion retailers from China will pass those costs on to the buyer.
Shipping delays: With the de minimis exemption removed, packages must now go through customs inspections, potentially causing delays in delivery times.
Operational adjustments: Shein remains heavily reliant on direct shipping from China, which could make it more vulnerable to these changes, although Temu has begun adapting.
Reduced availability: Customs delays may lead to longer shipping times for online purchases from Chinese retailers.
Inflationary pressures: The tariffs are expected to contribute to broader inflationary trends in Georgia, raising the cost of living as businesses pass higher costs onto consumers.
While the full impact of these tariffs is still unfolding, Georgia’s industries are showing resilience and efforts to diversify are underway, though these adjustments take time.
