Here’s a breakdown on everything in SC that may cost more from Trump Canada, Mexico & China tariffs
President Donald Trump slapped tariffs against Canada, Mexico, and China on Tuesday — a move that could mean higher costs and less business in South Carolina.
Trump’s long-threatened tariffs began just after midnight, with imports from Canada and Mexico now being taxed at 25%, according to the Associated Press. Trump also doubled the 10% tariff placed on Chinese imports in February to 20%.
Beijing retaliated on Tuesday with up to 15% tariffs on many U.S. farm exports. Canadian Prime Minister Justin Trudeau said his country would impose tariffs on more than $100 billion of American goods over a 21-day period, the Associated Press states. Mexico hasn’t yet announced any retaliatory measures.
South Carolina may be one of the smaller U.S. states, but it still has big trade and business with Mexico, Canada, and China — more than some might think.
What is a tariff?
Tariffs are a tax governments impose on the value of imported products, according to the International Trade Administration. Tariffs have been used by the U.S. government periodically since the late 1700s.
Despite Trump’s repeated statements, tariffs are not paid for by the countries they’re imposed on. Instead, any tariffs imposed on goods coming into the U.S. will be paid by American companies, which in turn will likely pass that cost onto consumers.
Tariff impacts on SC
According to a recent study by the Peterson Institute for International Economics, Trump’s tariffs plan will cost the typical U.S. household more than $1,200 a year.
The report adds that several factors could raise costs even above that estimate.
“Foremost, domestic producers that compete with the newly tariffed imports will increase their prices in line with import price increases, the PIIE report states. “This will add insult to injury for U.S. consumers, raising their costs above those shown in this figure. In general, higher prices alongside recessionary impacts from retaliation and supply chain disruption will negatively impact most US households.”
Scott Baier, associate dean of research at Clemson’s College of Business, recently told WYFF what Trump’s tariffs could mean for South Carolina. Baier has years of experience working on international trade deals, including those with the Bush administration.
“We’ve had specific trade deals with Mexico, with the Dominican Republic, that have allowed our textile plants in South Carolina to remain competitive with China — 25% tariffs on Mexico and Canada or any of our trading allies would make South Carolina’s textiles less competitive,” Baier said.
Baier also told WYFF that South Carolina sees billions of dollars a year in auto parts exports, as well as in auto imports. A 25% tariff on such goods may cost the state millions of dollars, he said.
SC import/export breakdown
Canada
- South Carolina exports $4.5 billion in goods to Canada annually.
- South Carolina imports $3.5 billion in goods from Canada annually.
- Canada is the #2 export market for South Carolina.
(Information from Connect2Canada and based on 2023 data)
China
- South Carolina exports $4.6 billion in goods to China annually.
- South Carolina imports $7.6 billion in goods from China annually.
(Information from globalEDGE and based on 2021 data)
Mexico
- South Carolina exports $2.12 billion in goods to Mexico annually.
- South Carolina imports $5.2 billion in goods from Mexico annually.
(Information from globalEDGE and based on 2021 data)
SC top 10 import goods (annual)
- Industrial machinery: $22.1 billion
- Electrical machinery: $12.6 billion
- Motor vehicle & parts: $11.1 billion
- Rubber: $5 billion
- Plastics: $4 billion
- Apparel (knit): $3.3 billion
- Furniture: $3 billion
- Inorganic chemicals: $3 billion
- Organic chemicals: $3 billion
- Precision instruments: $3 billion
(Information from globalEDGE and based on 2021 data)
SC top 10 export goods (annual)
- Motor vehicle parts: $23.1 billion
- Industrial machinery: $5.9 billion
- Rubber: $3.6 billion
- Plastics: $3.0 billion
- Electrical machinery: $2.4 billion
- Aircraft: $1.8 billion
- Precision instruments: $1.5 billion
- Organic chemicals: $1.2 billion
- Chemical products: $1 billion
- Wood pulp: $900 million
(Information from globalEDGE and based on 2021 data)
