China-US Trade Frictions: Trump's tariffs backfire as factory plans shutdown

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02:25

One American factory is to stop production because of Donald Trump's tariffs. Element Electronics is thought to be the first US company to publicly declare it'll all but shut down because of the trade war with China. And it's happened in a state that backed Trump strongly as president. Owen Fairclough reports from South Carolina.

"At Element, we're proud to bring manufacturing back to America and here in Winnsboro, South Carolina, it's a community effort, whoo!"

But not for much longer, in October, Element Electronics plans to all but close, laying off 126 employees and maintaining just a skeleton crew. It can't afford to assemble TVs at this site because Donald Trump's tariffs have made imported Chinese components too expensive. Employees were told to stay tight-lipped.

The Chamber of Commerce is worried about the knock-on effect.

TERRI VIKERS PRESIDENT, FAIRFIELD COUNTY CHAMBER OF COMMERCE "It's a big shock."

While U.S. unemployment is at record lows, in this region it's nearly double the national average.

OWEN FAIRCLOUGH WINNSBORO, SOUTH CAROLINA"Winnsboro has suffered some big economic blows in recent years. This textile mill operated for more than 100 years before it closed last year, with the loss of hundreds of jobs. That was after Walmart, another large employer, pulled out."

The conflict between the U.S and China is hitting the bottom line elsewhere in South Carolina.

China's retaliatory tariffs on U.S. exports include BMWs built in Spartanburg.

Element is trying to persuade the U.S. government to waive tariffs so it can maintain operations.

But these workers don't have the time or money to stake their immediate futures on the outcome of an escalating trade war. Owen Fairclough, CGTN, Winnsboro, South Carolina.