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WASHINGTON, D.C.–If you work in agriculture, or in any of the businesses that export goods from Indiana to China, you could see some negative impact from the new 25 percent tariff on Chinese imports. That’s because Indiana exports over $1 billion in goods to China every year, and China plans to retaliate with its own tariffs.

Kevin Brinegar, president of the Indiana Chamber of Commerce, said many businesses were able to absorb the ramifications of the 10 percent tariff from last year.

“But, at 25 percent, that’s just simply not possible, and they can’t cut their price enough to offset the impact of the tariffs,” he said.

So, Indiana businesses may be affected by a lack of demand. When demand goes down, so do prices, and so do profits.

“The consumers there (China) may start looking for other suppliers. That puts us at a competitive disadvantage with suppliers from other countries who aren’t subject to this tariff.”


Brinegar said that Hoosier products like gear boxes for cars and trucks, needles and catheters are some products that Indiana exports, for which China will likely find new suppliers, depending on whether or not the tariffs become a long trade war.

“We do agree with President Trump that China has gotten off far too easy over the last few decades – paying comparatively low duties and especially with its essentially non-existent intellectual property rights law that encourages innovation theft,” said Brinegar. 

“That theft is estimated to cost the U.S. hundreds of billions of dollars each year, and it needs to stop. But there has got to be a better way than putting American businesses and jobs on the line. And we are communicating that to members of Indiana’s congressional delegation and the Trump administration.” 

He said Chamber members were contacting their senators representatives in Washington.

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