Experts fear new tariffs from China could slow down the Texas economy.
Since 2009, the United States’ economy has seen its biggest period of expansion in its history. Texas has been at the forefront of that expansion, faring much better than many other states. But that could change, economists worry.
The new tariffs will cost China billions of dollars, and the Asian superpower is saying it will not go down lightly. It’s promised to punch back against Trump’s tariffs, fueling concerns about an impending trade war.
Decreased trade between the two nations would do harm to Texas’ economy, experts say. The state exports the most goods in the United States, meaning that less trade could cause less economic growth within the Lone Star State.
“Agriculture, manufacturing, industry services and even oil are all going to be really slammed by those Chinese retaliatory tariffs,” SMU economics professor Mike Davis said.
Trump has said that the tariffs are necessary to force China to stop stealing American company’s intellectual property and technology. But Davis says that the tariffs will not get to the heart of that issue.
“If President Trump was really interested in the technology issues, he'd deal with the technology issues,” Davis said.
Davis fears that those tariffs could backfire, hurting everyday Americans in the process.
“When people realize how much these tariffs are hurting their pocketbooks and how many job losses are going to be caused by these tariffs there's going to be a backlash,” he said.
Some are saying that tariffs could affect more than 150,000 jobs in Texas alone.
The two sides have until midnight eastern time to reach a deal that would rescind the tariffs.