Indiana has lots to lose in Trump's trade war with China
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President Trump's ongoing tariff war with China could have an outsized impact on Indiana.
Why it matters: Indiana is one of the biggest goods exporters to China, sending $6.1 billion in goods to the country, which is more than all but three other states.
- If sky-high tariff rates remain in place, many U.S. companies and industries will no longer be able to compete in China's market, putting thousands of Hoosier jobs at risk.
By the numbers: The U.S. exported $145 billion worth of goods and materials to China in 2023, according to the U.S.-China Business Council.
- Of Indiana's $6.1 billion in goods that year, $3.2 billion was in pharmaceuticals and medicines.
- Oilseeds and grains were the next largest category, worth $1.2 billion.
Zoom in: Indianapolis is particularly sensitive to a trade war with China.
- China is the top export market for Indiana's 7th congressional district, which covers most of Marion County and is home to pharmaceutical giant Eli Lilly.
What they're saying: "I think it's a pivot in U.S. policy and it feels like it'll be hard to come back from here," Eli Lilly CEO David Ricks told the BBC.
- Ricks said that, because of drug price caps, tariffs will likely lead to cuts in staffing and/or research and development.
Zoom out: China is the U.S.' third-biggest export market, supporting more than 930,00 American jobs.
Between the lines: President Trump's tariff strategy aims to rebalance the global economy, but economists warn it will likely lead to higher prices for everyday necessities like food, clothing and cars, while also putting pressure on businesses.