Could Trump’s tariffs damage Georgia’s economy? Here’s what will cost more
President Trump’s administration implemented new tariffs on imports from some of the U.S.’s major suppliers and Georgia consumers may feel the pinch. Mexico, Canada and China have imposed retaliatory tariffs, further driving prices up on everything from peaches to iPhones.
Despite Trump’s allegations that neighboring nations continue to allow illegal drugs to enter at the borders, Canada, Mexico and China are the U.S.’s largest trading partners, according to ABC News. The U.S. depends on goods and items from these countries, and a new trade war has the potential to upend economic partnerships.
Economist and professor of finance at Emory’s Goizueta Business School, Tom Smith, told Fox5 Atlanta, in early February, “ Businesses are going to pass as many of those costs on to consumers as possible.”
This could cause significant implications for Georgia’s economy. The Yale Budget Lab predicted that these tariffs could cost the average household up to $2,000 annually.
Potential price changes in Georgia
The Federal Reserve Bank of Atlanta study suggests that if all costs from the import taxes are passed on to consumers, the price of retail purchases could increase by up to 2.6%
Georgians should brace for potential price increases on a wide range of products.
Groceries:
Avocados
Poultry
Pecans
Peanuts
Soybeans
Steel and aluminum
Automobiles and vehicle parts
Aircraft
Farm equipment
Consumer goods
Phones and computers
Furniture
Lumber
Clothes and apparel
Impact on Georgia Jobs
The new tariffs implemented by President Trump could significantly impact jobs in Georgia, and the Peterson Institute for International Economics has some bleak projections.
Manufacturing sector: Several counties in Northwest Georgia could face some of the worst job loss, nationally. Murray County, particularly, could lose up to 18% of its jobs.
Carpet and textile industry: Concentrated in cities like Dalton, Georgia, carpet and rug plants might face a 5% job loss, while synthetic rubber work could see a 41% job loss.
Port of Savannah: Diminished growth opportunities in the logistics sector and the associated warehousing, storage, and trucking industries.
Agriculture: Georgia farmers, including pecan and Vidalia onion producers, could see diminished production and a labor force reduction.
Automotive industry: The auto and steel tariffs could slow the supply chain, potentially leading to job losses.
Georgia State University’s news site, the Forecaster, suggests a potential slowdown in hiring and spending. Some negative trends have started to emerge in the recent announcements of layoffs at major employers like CNN, Macy’s and the CDC, along with pullbacks in planned electric vehicle battery plant projects.
Although all these predictions have yet to happen, it does seem certain that Georgia can expect an economic downturn of some sort in the coming year.
What are your predictions for Georgia in the upcoming year? Email me at srose@ledger-enquirer.com or find me on Instagram.
This story was originally published March 4, 2025 at 2:29 PM with the headline "Could Trump’s tariffs damage Georgia’s economy? Here’s what will cost more."
