How the trade war with China could crush California’s $2.7 trillion economy and hurt other states

“For about the last 15 years, China has been the fastest-growing export market for American companies,” said Erin Ennis, senior vice president of the US–China Business Council, which represents some 200 US companies doing business in China. “Agriculture, electronics, industrial processes — these kinds of products where it represents the largest percentage of US exports — are, as a consequence, at most risk of China’s tariffs,” Ennis said, adding that Illinois, which exports agricultural products and chemicals to China, was especially hard hit in 2018. Same story in Louisiana. Texas, which is also the largest exporter of electronics to China, was also hit hard. Ennis said the increase of some tariffs to 25% — first by the US, followed by China in retaliation on June 1 — may be too much for even the craftiest workarounds. “We’re likely to see in the coming months some increases in prices, not just of consumer goods but even for the industrial inputs that go in to the higher-end products that companies use to be able to do business,” she said.