Tennessee, a leading importer from China, could be hit hard by tariffs
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Tennessee is one of the nation's top trading partners with China, importing a whopping $20.9 billion in goods last year alone.
Why it matters: Steep tit-for-tat tariffs could raise prices for imports and hurt demand for goods Tennessee produces.
- Because Tennessee is one of the top U.S. buyers of goods from China, President Trump's 145% tariff on those imports could have an outsized impact here.
Zoom out: Tennessee is the fourth-highest importer of goods from China in the U.S. Only three other states buy more: California, Illinois and Texas, which all have much larger populations.
By the numbers: Census data sheds more light on what Tennessee businesses are buying from China.
- The top imports in 2024 were electronics like TVs and phones ($7.1 billion), machinery ($4.3 billion), pharmaceutical products ($3.7 billion) and vehicle parts ($1.1 billion).
Yes, but: In a series of messages over the weekend, the Trump administration said smartphones, laptops and other electronics will be temporarily exempt from most new tariffs. Trump said that 20% tariffs imposed over the flow of fentanyl will still apply.
What he's saying: Gov. Bill Lee said the tariffs are having a "very positive benefit" on Tennessee, saying they give car manufacturers like Nissan more incentive to produce vehicles here.
The big picture: Tennessee also makes a lot of money shipping goods to China. State businesses exported about $3.2 billion in goods and services to China in 2023.
Zoom in: China is Tennessee's third-largest market for exports, after Canada and Mexico.
Between the lines: China's new levy on exports from the U.S, which it raised to 125% last week, could be especially devastating for farmers.
- The state's top exports include soybeans, cotton, corn and other plant products, according to federal data.
Stunning stat: Tennessee's global exports supported an estimated 125,000 jobs as of 2022, according to the Office of the United States Trade Representative.