California says trade war will shatter its $2.7 trillion economy
After a year into America’s trade war with China, California says the Trump administration’s latest tariff move could crush the state’s $2.7 trillion economy and harm other states across the U.S. as well.
According to CNBC, California conducts more trade with China than any other state in the country, with the state’s total trade value with the country topping approximately $175 billion. The latest escalation in the trade war, with some tariffs rising to 25% on June 1, comes as overall economic growth in California begins to cool. The state’s economy grew by 3.5% in 2018. That pace slowed to 2% in the first quarter of 2019, according to the U.S. Commerce Department.
According to CNBC, California exports to China — beyond the agricultural products that flow through Oakland — are already feeling the impact of the trade war, according to the U.S. Census Bureau, reported by CNBC. Volume for the first four months of 2019 is down roughly 13%. Computers and electronic components make up nearly 26% of the state’s exports to China, according to the California Chamber of Commerce.
California is also by far the biggest importer of goods from China, bringing in $161.2 billion in goods last year and $39 billion in the first four months of 2019, according to CNBC. Other big exporting states to China include Texas, which sent about $16.6 billion in goods last year, Washington at $15.9 billion, South Carolina at $5.6 billion and Oregon at $4.7 billion.
To read the CNBC article, click here.