Trump's China Trade War: Which States Will be Hit Hardest?

The U.S. and China are gearing up for a full-blown trade war.

On Tuesday, the Trump administration announced it is now pushing for $100 billion in additional tariffs on Chinese goods imported, on top of the $50 billion that was unveiled earlier this week.

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U.S. President Donald Trump signs a memorandum on intellectual property tariffs on high-tech goods from China, at the White House, on March 22. On Tuesday, the Trump administration announced it is now pushing for $100 billion in additional tariffs on Chinese goods imported, on top of the $50 billion that was unveiled earlier this week. Reuters

China retaliated yesterday with plans to implement $50 billion worth of tariffs across 106 U.S. products, targeting major American-made goods such as soybeans, types of aircrafts and corn products. The Chinese ministry also warned Beijing will not hesitate to enforce future tit-for-tat measures if the U.S. continues to escalate the trade war.

As a result, the stock markets have fluctuated rapidly. Republicans have also warned Trump against embarking on a war that would potentially deal an economic blow to politically crucial areas of the nation. It's unclear exactly how the trade war will develop, but the burden will undoubtedly fall unevenly on various industries and states.

Which States Will Be Hit Hardest in the Event of a Full-Blown Trade War?

Last year, the total value of goods that were exported from America to China reached $130 billion. Goods categorized under aerospace, soybeans, motor vehicles, electronics and paper made up more than half of these exports.

In 2016, Washington, Oregon, Alaska, Louisiana and South Carolina exported more goods to China than other states, according to data tracked by the U.S. Census Bureau on international trade of goods. These states are among those that will be hit hardest by an escalating trade war.

In 2017, Washington, California, Texas, Louisiana and South Carolina provided around 51 percent of total goods exported to China.

In addition, Iowa, South Dakota and Nebraska, are also states that will likely be impacted due to their reliance on exporting grains, such as corn and soybeans, goods that are on the Chinese government's list of 106 products that will be subject to additional tariffs of 25 percent.

If China implements its threats of tariffs on motor vehicles, Indiana, Michigan, Ohio and Tennessee will also be dealt a heavy blow. These states comprise a disproportionately large amount of people working in the automobile industry. According to figures from the Labor Department's Quarterly Census of Employment and Wages, Michigan is home to around 180,000 jobs in the auto industry.

Trump's China Trade War: Which States Will be Hit Hardest? | U.S.