Nevada Exports Threatened By Retaliatory Tariffs

Retaliatory Tariffs Are In Response To President Trump's Tariffs

July 05, 2018 - 12:36 pm

LAS VEGAS (AP) — About 367,800 jobs in Nevada are supported by trade, according to the analysis, so it's no surprise that there could be some angst from people living in the Silver State, especially when it comes to tariffs and trade.

A U.S. Chamber of Commerce analysis shows about $107 million in Nevada exports are subject to retaliatory tariffs threatened by an emerging trade war.

The retaliatory tariffs are imposed or expected from Canada, Mexico, the European Union and China in response to tariffs President Donald Trump has imposed on steel, aluminum and Chinese imports, the Las Vegas Review-Journal reported Monday.

The U.S. implemented a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports from Canada, Mexico and the European Union last month. Tariffs on $34 billion worth of Chinese goods are planned to be imposed Friday.

In response, about $75 billion of U.S. exports are subject to tariffs from those countries, according to the analysis. The European Union announced tariffs on 25 percent of U.S. imports last month. Mexico has imposed tariffs on U.S. steel and Canada has imposed tariffs on $12.6 billion in American products. China has planned tariffs on $34 billion in U.S. products.

The threat to Nevada exports may be small considering the state's total gross domestic product was about $156 billion last year, said Brian Gordon of Applied Analysis.

"That's a really small percentage," Gordon said. "The Nevada economy tends to have a lower concentration of manufacturing-related employment as opposed to other states."

Tariffs could cause the cost of construction materials to rise, slowing down development activity as a result, said Ken Simonson, chief economist at the Associated General Contractors of America.

"Tariffs are costly for construction, both in terms of materials and the likely impact on demand for different kinds of construction," Simonson said. "I would expect this will cause some owners to hit the pause button."

About $18.8 billion in construction projects are planned, proposed and ongoing in southern Nevada, according to Applied Analysis.