A sweeping 145% tariff on Chinese imports proposed by President Donald Trump could have serious consequences for Tennessee’s economy, as new data reveals the state’s deep reliance on trade with China—its largest import partner by more than double.
According to a USA Trade dataset from the U.S. Census Bureau, Tennessee businesses imported nearly $21 billion worth of Chinese goods in 2024. With the proposed tariff, that amount of trade would now cost over $51 billion—adding $30.3 billion in new taxes that businesses would be forced to absorb or pass on to consumers.
Top Chinese imports to Tennessee last year included $7.1 billion in consumer electronics, $4.3 billion in machinery and parts, $3.7 billion in pharmaceutical products, and $1.1 billion in vehicle parts. While some of these goods are sold directly to consumers, many are essential inputs for Tennessee manufacturers and suppliers.
“These tariffs don’t just hit retailers,” one trade analyst said. “They strike at the heart of Tennessee’s industrial supply chain, from auto parts to electronics.”
With steep new costs looming, businesses are left with tough choices, e.g., pay the tariffs and double their expenses, scramble for new suppliers, invest heavily in domestic sourcing, or shut down altogether—each option carrying serious economic consequences.
To make matters worse, China has announced a retaliatory 125% tariff on American exports. Tennessee shipped $3.4 billion in goods to China last year, raising fears that local exporters could soon face the same financial squeeze.
