How will Alabama’s biggest trade partners hit back at Trump tariffs?
How will Alabama’s international trading partners react to Wednesday’s round of sweeping tariffs announced by President Donald Trump?
Trump imposed a minimum tariff of 10% on imports, with the tax rate running much higher on products from certain countries like China and those from the European Union.
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The danger for Alabama companies that export around the world is in any retaliatory tariffs imposed by those countries.
The European Union has not said yet how it might strike back, but last month it responded to steel and aluminum tariffs by announcing $28 billion worth of tariffs on American goods exports.
Alabama exported $26.8 billion worth of goods in 2024, the second highest annual tally for worldwide shipments in the state’s history. The bulk of those exports are motor vehicles, chemicals, minerals and ores, primary metals and paper.
And in all, Alabama exports went to 201 countries last year.
The top destinations for the state’s exports in 2024 were:
1. Canada: $4.3 billion (up 7%)
2. Mexico: $4.2 billion (up 32%)
3. China: $4.1 billion (up 11%)
4. Germany: $4.1 billion (down 19%)
5. Japan: $880 million (down 8%)
Canada and Mexico avoided new duties, as the president had already imposed 25% on steel and aluminum.
China faces 54% tariffs, when earlier ones are factored in. Germany in the European Union was slapped with a 20% tariff, while Japan has a 24% tariff.
Several nations have said they are open to negotiation on tariffs, while others have promised to respond in kind.
The Washington Post Thursday reported that China has promised Thursday to retaliate, while the European Union prepared another salvo of tariffs against U.S. goods.
According to the Guardian, potential Chinese countermeasures could include reciprocal tariffs, devaluing China’s currency, and more restrictions on the export of certain rare earth metals.
This morning, Canada responded with 25% tariffs on U.S. automobiles, according to Bloomberg. Mexican President Claudia Sheinbaum said on Wednesday that the country would not pursue a “tit-for-tat on tariffs” but would rather announce a “comprehensive program.”
According to The New York Times, the state of Japan’s economy and the central position of its trade relationship with the U.S. makes it difficult to strike back.