How China trade war could impact Arkansas exports
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China was Arkansas' third-largest market for exports in 2023, according to the most recent estimates from the U.S.-China Business Council, raising the specter of economic disruptions should a trade war erupt.
Why it matters: Because most of the state's exports to the country are agriculture-related, farmers would likely be the first to suffer.
State of play: China retaliated against President Trump's tariffs on Wednesday with a new 84% levy on exports from the U.S., Axios' Ben Berkowitz reported.
- Later on Wednesday, Trump paused reciprocal tariffs on many countries but increased the tax on China to 125%.
By the numbers: The value of Arkansas' exports to the country have been near the $1 billion mark for the past decade, save for a slump in 2018 and 2019. About 13% of the state's global exports went to China in 2023.
- Oilseeds and grains were the top export that year, valued at $613 million.
- Those were followed by miscellaneous crops ($158 million), pulp and paperboard ($40 million), chemicals ($32 million), and resins and synthetic fibers ($21).
Zoom out: The U.S. exported $143.5 billion worth of goods and materials to China in 2024, down 2.9% from 2023, according to the Office of the U.S. Trade Representative.
- Mineral and chemical products are the top U.S. export, followed by agriculture products like the kind coming out of The Natural State.
