President Donald Trump’s March order to impose a 25% tariff on steel as well as a 10% tariff on aluminum imports not only set off objections across seven continents, but it also has government and business leaders around the world fretting about the fallout from a potential trade war with China.
As Business Report details in a feature from the latest issue, There’s growing concern in the Capital Region that industry here may soon feel the impact of a looming U.S.-China trade war.
Measuring the impact of a retaliatory trade war right now is pretty much a guessing game. Companies in this area have inventory in supply and exactly who will be subject to any tariffs remains a mystery as companies jockey for exemptions.
By mid-April, more than 1,200 companies across the United States had applied for waivers from the steel tariffs, the U.S. Commerce Department confirmed to The Washington Post, while 125 are requesting exemptions from the aluminum tariffs. The White House earlier this week said it would extend for 30 days negotiations on steel and aluminum tariffs on imports from Canada, Mexico and the European Union, all of which were temporarily exempt from the tariffs soon after they were announced, according to the BBC. China was not included in that exemption, and soon retaliated with its own list of tariffs on U.S. goods after the initial announcement.
China’s proposed tariffs could affect up to 2.1 million American jobs across more than 40 industries—ranging from aircraft manufacturing to fruit and vegetable canning—according to estimates from The Brookings Institution. Included in that figure is some 2,422 jobs in East Baton Rouge Parish, 2,025 in Ascension Parish and 1,158 in Iberville Parish.
Which explains why statewide groups like the Association of General Contractors, the Port of South Louisiana and the World Trade Center of New Orleans are paying close attention to this geopolitical game of tariff threats.
Tariffs are but one uncertainty for Ken Naquin, CEO of Louisiana Associated General Contractors. He’s also worried about the on-hold decision in East Baton Rouge Parish about how those applying for the Industrial Tax Exemption Program will be evaluated, leaving in jeopardy, by his count, some $90 billion worth of projects under consideration.
This could mean delayed economic development for the state, Naquin says.
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