U.S. Chamber Analysis: $5.6 Billion in California Exports Target in Trade Retaliation
Tuesday, July 03, 2018
The U.S. Chamber of Commerce released an analysis showing the state-by-state impact of retaliatory tariffs from China, the EuropeanUnion, Mexico, and Canada, which have been imposed in response to new U.S. tariffs on imported goods.
The California Chamber of Commerce is concerned over the impact that U.S.-imposed tariffs could have on international trade and the state’s economy. Raising tariffs will have adverse consequences and fails to consider the impact on our allies and trading partners.
The analysis was compiled using data on state exports from the U.S. Department of Commerce and data on U.S. exports subject to foreign tariffs from the official government sources of China, the EU, Mexico, and Canada.
Although trade is a nationally determined policy issue, its impact on California is immense. California exports to more than 225 foreign markets.
Raising tariffs can result in higher prices to the consumer for the specific product protected and in limited choices of products for consumers. Further, it can cause a net loss of jobs in related industries, retaliation by U.S. and California trading partners, and violates the spirit of our trade agreements.
The U.S. Chamber analysis found that a total of $5.6 billion in California exports will be targeted for retaliation.
- $562 million in California exports to Canada are targeted for retaliation. Breakdown of hardest hit products exported to Canada annually:
- $84 million in bread, pastries, cakes, etc.
- $56 million in sauces, condiments, and seasonings
- $43 million in upholstered seats, and seats with wooden frames
- $699 million in California exports to Mexico are targeted for retaliation. Breakdown of hardest hit products exported to Mexico annually:
- $122 million in food preparations
- $77 million in cheese of all kinds, grated or powdered
- $70 million in apples
- $4 billion in California exports to China are targeted for retaliation. Breakdown of hardest hit products exported to China annually:
- $1.4 billion in electric motor vehicles
- $895 million in passenger vehicles
- $383 million in California exports to Europe are targeted for retaliation. Breakdown of hardest hit products exported to Europe annually:
- $77 million in eye makeup
- $56 million in iron and steel nuts
- $48 million in women’s clothing products
The CalChamber continues to pursue a free trade-based agenda in 2018. CalChamber has long supported free trade worldwide, expansion of international trade and investment, fair and equitable market access for California products abroad, and elimination of disincentives that impede the international competitiveness of California business.
According to a California state government international trade and investment study, “International trade and investment is a major economic engine for the state of California that broadly benefits businesses, communities, consumers and state government… California’s economy is more diversified than ever before, and the state’s prosperity is tied to exports and imports of both goods and services by California-based companies, to exports and imports through California’s transportation gateways, and to inflows and outflows of human and capital resources.”
Trade offers the opportunity to expand the role of California’s exports. In its broadest terms, trade can literally feed the world and raise the living standards of those around us.
The analysis is available online at www.thewrongapproach.com. State-specific fact sheets are available for download, as is the full U.S. data set.
Category: Chamber News, Advocacy News, Economic Development, Breaking News