Pa. could be hit hard by Chinese tariffs
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Pennsylvania exported $3.1 billion worth of goods to China in 2023 — supporting more than 24,000 local jobs.
Why it matters: Now, those industries face major headwinds as U.S.-China trade tensions boil over.
Catch up quick: China increased its tariff on U.S. goods to 125% last week. The U.S. now charges 145% on Chinese goods — the 125% reciprocal rate plus an earlier 20% tariff in a dispute over the flow of fentanyl, Axios' Ben Berkowitz reports.
Zoom in: China is Pennsylvania's fourth-largest export market, accounting for 6% of the state's global exports, per the U.S.-China Business Council.
- The hardest-hit sectors include nonferrous metals (not including steel), which brought in $477 million in export value last year. Other key industries are pharmaceuticals, oil and gas and navigational instruments.
- Pennsylvania's farming industry, already dealing with federal funding cuts, has warned for weeks that new tariffs will make it even harder to export their products abroad. The state's agricultural exports include dairy, corn, soybeans, feeds, grain and other plant products.
- In 2024, the state imported $16.6 billion in goods from China, from electric machinery and nuclear reactors to pharmaceutical products and furniture.
Zoom out: China is the U.S.' third-biggest export market. More than 931,000 jobs were supported in 2022 by U.S. exports to China, according to the council.
The big picture: 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.
