These RI Industries Hit Hardest In Tit-For-Tat U.S.-China Trade War

RHODE ISLAND — President Donald Trump’s escalating trade war puts about $92 million in exports and 1,610 jobs on the line for Rhode Island 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 stuck 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.

In 2023, U.S. exports to China amounted to $144.9 billion and supported almost 1 million jobs. 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.

Rhode Island's top exports to China are marine products, semi-conductors and components, basic chemicals, nonferrous metal products, and household appliances.

"Instead of creating jobs, Donald Trump is creating chaos with his reckless trade war," U.S. Rep. Gabe Amo said. "We’re already seeing the effects of his announcement — markets plunging after hours, increased economic turmoil, and allies around the world pledging to retaliate. As analysts struggle to understand the long-term impacts of these tariffs and small businesses prepare themselves for higher operating costs, Trump is forging ahead with a plan that will jack up costs for everyday Americans. The price of these tariffs will be passed onto consumers. They will create uncertainty for workers and further isolate us from our allies to pay for a billionaire tax giveaway."

Of the $144.9 billion in exports 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 U.S.-China Business 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.

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