125K CA Jobs On The Line As Trade War With China Threatens These CA Industries

CALIFORNIA — President Donald Trump’s escalating trade war puts about $24.4 billion in exports of goods and services, and 125,650 jobs on the line for California businesses and industries, according to the U.S.-China Business Council.

Trump pulled back on some tariffs Wednesday, leaving a 10 percent across-the-board tariff in place, but delaying more punitive taxes for 90 days with a lone exception. China increased its duties on U.S. goods to 84 percent in response to the tariffs, and Trump struck back by raising the duty on imports from China to 125 percent.

The stock market quickly responded to the announcement, with stocks surging to one of their highest gains since World War II.

U.S. exports to China amounted to $144.9 billion and supported almost 1 million jobs in 2023. The tariffs have divergent effects on states, even within industries. The hardest hit are those that produce soybeans, semiconductors, pharmaceutical preparations and crude oil, the top U.S. exports to China.

As of 2023, California was home to over 600 semiconductor fabrication facilities — more than any other state, according to the governor's Office of Business and Economic Development.

Former Democrat House speaker and current U.S. Rep. Nancy Pelosi of the state's 11th District said Monday in a post on X that Trump's "inept trade war is crashing the economy, raising costs and wiping out the hard-earned savings of working families across the country."

China is California's third-largest export market for goods at $16 billion, behind Mexico at $33 billion and Canada at $19 billion, according to the council, which reported that 9 percent of the Golden State's global goods exports went to China in 2023.

Among the top goods exported to China that year were $1.6 billion in navigational and measurement instruments, $1.4 billion in motor vehicles, $1.2 billion in industrial machinery, $1.1 billion in semiconductors and components, and $931 million in fruits and tree nuts.

Gov. Gavin Newsom, in a news release Wednesday, encouraged global partners to continue to work with California, which is the fifth-largest economy in the world.

“California knows the importance of trust and dependability, and unlike some folks in Washington D.C., we don’t change the rules with every presidential mood swing," the governor said. "California is a trusted, reliable partner for international trade and investments. We urge countries around the globe to continue to work with us — we’re open for business.”

Of the $144.9 billion in U.S. exports to China in 2023, $125 billion was for products grown, produced or manufactured domestically, and the remainder was for foreign goods re-exported to China, according to the council report.

More than 931,000 U.S. jobs are supported by exports to China, outnumbering those supported by the next two Asian markets combined, the report said. Agriculture and livestock exports to China support more U.S. jobs than any other sector by a wide margin.

The report noted that U.S. exports to China dropped by 4.3 percent in 2023 due to stunted economic growth in China, Russia’s war in Ukraine, and strained U.S.-China relationships, as well as long-standing barriers such as tariffs. Soybeans, other oilseeds, and grains fell by $7 billion.

“Challenges in that sector worsen if other producers continue to become more competitive or if these products are targeted in a future tariff spat,” the report said.

Exports of semiconductors have also fallen by several billion dollars, or 52 percent, since the peak in 2021. Oregon was among the hardest hit states by the national decline in this category.

The full 2024 report on U.S. exports to China is available online.