“The European Union’s response confirms that tariff threats are no longer abstract — they are beginning to shape real economic behavior,” said Donald Bryson, CEO of John Locke Foundation.
North Carolina's trade with China is down on both imports and exports, on par with the national trend.
An analysis of trade data reveals that pharmaceuticals are the No. 1 trade commodity, with Mexico and China among NC's top trade partners.
Experts analyze the stability of the trade deal as China ramps up imports of Brazilian soybeans.
A key provision of the agreement was to reduce the import tariff on Korean autos and auto parts from 25% to 15% which would level the playing field between them and their Japanese competitors, according to Reuters.
Through July year-to-date, NC’s imports of inorganic chemicals, precious and rare earth metals, and radioactive compounds rose sharply from $364.1 million to $1.1 billion — an increase of roughly 211%.
Sens. Ted Budd and Rep. David Rouzer urged President Trump to prioritize NC flue-cured tobacco as China halts purchases, threatening millions in farm exports.
The $1.1 billion drop in imports reflects $1.1 billion worth of affordable vehicles and parts that were available to consumers last year but are no longer accessible this year.
After Trump's 50% tariff on steel imports earlier this year, the European Union has responded with its own 50% steel tariff.
Pressure is now mounting as harvest season is not far off, with farmers expecting a significant harvest, while facing the loss of their largest market (China).
Many agriculture experts see this as a repeat of what happened in 2018, when the Trump administration imposed tariffs on China, leading to similar blowback.
