International politics are expected to make a big impact on Alabama, and the Gulf Coast.
According to the U.S. Chamber of Commerce, the state of Alabama will be the fifth hardest hits state in the nation as a result of the trade war with China. The lobbying group reported $2.4 billion of the state's exports to China will be threatened.
The number one hardest-hit state as a result of China's retaliation tariffs is Louisiana, according to the U.S. Chamber of Commerce, which will have $5.7 billion dollars of exported goods impacted.
The anticipated effect would be a result of new tariffs, imposed by President Donald Trump, which went into effect at 12:01 a.m. Friday, July 6.
The Trump tariffs affect $34 billion worth of Chinese products coming into the U.S.
Those 25 percent tariffs have sparked a trade war, with the Chinese government retaliating by imposing its own tariffs on American exports going to China.
The Vice President of Economic Development for the Mobile Area Chamber of Commerce, David Rodgers, told FOX10 News he believes it's that retaliation that could have a devastating impact on Mobile's economy. "We are very much for fair and free trade, we do not believe a tariff war is the solution," explained Rodgers.
Rodgers said the American products now facing Chinese tariffs, like soy beans, seafood, and automobiles, are exported right out of the Port of Mobile.
"All these products do move through our port right now, so it will affect Mobile's economy, just like it will affect the whole state of Alabama," Rodgers said. "It could ultimately mean down to local jobs, eventually down the road...we can very well have a trickle down effect to every local employee in Mobile County."
Alabama politicians are also speaking out about the consequences of the trade war.
Republican Governor Kay Ivey wrote in a statement to FOX10 News, “Import tariffs, and any retaliatory tariffs on American made goods, will harm Alabama, the companies that have invested billions of dollars in our state, and the thousands of households which are dependent upon those companies for a good-paying job. I strongly oppose any efforts that may harm those companies that employ thousands of Alabamians and contribute billions to our economy. I am committed to protecting Alabama jobs and consumers, the world over, who are proud to purchase products made in Alabama.”
Democratic Senator Doug Jones said its an issue he's been trying to fight for months.
"I've been sounding the alarm bells on these tariffs for a couple of months now, ever sense the president first started announcing tariffs on steel and aluminum," explained Jones. "This is going to hurt Alabama, and you know I'm glad to see that some people are starting to realize this could potentially cost Alabama a lot of jobs."
He calls the tariffs a "tax on the American public."
"Alabama is an exporting state, we don't get enough credit for that, but we are an exporting state, we had record exports last year, and this is going to hurt our bottom line," said Jones.
Jones also said some lawmakers in congress are currently reviewing possible legislation to put some of the tariffs on hold, as well as legislation that could remove the president's power to impose tariffs.
FOX10 News will keep you posted on how those measures proceed.
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