Chinese Retaliatory Tariffs ‘Shrewdly’ Designed to Hurt Rural America

 Axios has posted an interactive map that shows the localized effects of  Chinese retaliatory tariffs if President Trump acts on his threat to impose another $200 billion on tariffs on Chinese exports to the United States.

Axios has posted an interactive map that shows the localized effects of  Chinese retaliatory tariffs if President Trump acts on his threat to impose another $200 billion on tariffs on Chinese exports to the United States.

 

Axios.com has posted a story with an interactive map showing areas of the country destined to feel the greatest pain from retaliatory tariffs spurred by President Trump’s trade policies.

“Industries affected by the brinksmanship are mostly concentrated in rural, deeply red, already-struggling parts of the country, with political consequences for Trump and Republicans in 2018 and beyond,” according to the Axios analysis. 

The analysis drew on data from the Brookings Institution, US Chamber of Commerce, US Census Bureau and Bureau of Labor Statistics.

Axios posted the map after a public comment period ended last week on Trump’s threat to quadruple tariffs on Chinese goods to $200 billion. China has said it will retaliate with $60 billion in tariffs on US exports.

“That's on top of 25 percent and 10 percent tariffs enacted, respectively, on steel and aluminum imports from Canada, China, Mexico and the European Union, and by those countries against the United States,” Axios reported.

US farmers, manufacturers and consumer groups have been bracing for the blowback. The Axios map helps to localize where the most severe impact could be felt. For example, it identifies six industries in Douglas County that would be affected by retaliatory tariffs, which is 95 times more concentrated impact than the the national average. The map identifies 35 affected industries in Clackamas County.

“Employment in rural and low-population counties can be exceptionally vulnerable to gyrations in the global economy,” Mark Muro, a senior fellow at the Brookings Institution, tells Axios. "In a small county, a single meatpacking establishment can provide hundreds of jobs and make up a large share of that county's total employment.”

Muro  and a colleague wrote a previous report anticipating the impact of retaliatory Chinese tariffs with this observation: “Trade diplomacy can often seem an international and faraway activity. However, when it comes down to specific lists of tariffs on particular products that Americans produce, from ginseng to airplanes, the high-level posturing of Washington and Beijing suddenly gets more real.”

He added: “Our top line estimates suggest while the total number of jobs potentially disrupted by an all-out trade war remains modest, the count encompasses a diverse and shrewdly chosen ‘hit list’ of hallmark American industries – one that appears well-calculated to scare both red and blue America.”

Trump has assured his supporters, especially in the Farm Belt, his take-no-prisoners approach to international trade can produce positive results for US workers, businesses and farmers. In response to immediate-term impacts on soybean growers and other farm interests, Trump proposed a one-time $4.2 billion subsidy. It has met with opposition and disappointment by congressional Republicans and recipients of the aid.