China-US Trade Tensions: Trade-dependent state of Louisiana braces for tariff impact

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03:24

Among the US states that could be hardest hit by tariffs is Louisiana. According to the US Chamber of Commerce, more than half a million Louisiana jobs are supported by global trade. Ports along the Mississippi River in particular could feel a big impact. CGTN's Hendrik Sybrandy reports.

The Port of South Louisiana just west of New Orleans is America's largest tonnage port. 280 million metric tons of cargo were handled here just last year.

PAUL AUCOIN EXECUTIVE DIRECTOR, PORT OF SOUTH LOUISIANA "I like to say that we're probably one of the most important ports that nobody ever heard of."

Port director Paul Aucoin sees storm clouds gathering over this stretch of the Mississippi River where so much of America's business is done. Tariffs have been imposed. More are threatened. But their effects haven't been felt here just yet.

PAUL AUCOIN EXECUTIVE DIRECTOR, PORT OF SOUTH LOUISIANA "It has caused a lot of uncertainty. Everyone's a little unsure about what the future holds."

An hour's drive away, south of New Orleans, the future has arrived at Elite Energy. U.S. steel tariffs have made the material these workers use to manufacture hydraulic fracturing equipment 25 percent more expensive.

JUSTIN RAMIREZ ELITE ENERGY VP OF BUSINESS DEVELOPMENT "Yes we had to raise prices to keep up and make the margins that we need to make. I'm not happy about it. It's affected us negatively I guess."

EDDY HAYES TRADE LAWYER "I don't know that we've had the full impact yet. Certainly I can tell you that it's created a lot of nervousness."

International trade lawyer Eddy Hayes says Louisiana, with its long import and export history, could be hit hard by U.S. tariffs and other countries' retaliatory measures.

HENDRIK SYBRANDY RESERVE, LOUISIANA "The Port of South Louisiana ships and receives cargo from more than 90 countries around the world. China is one of the top five import nations. China is also one of the top five commodity destinations."

$5.7 billion worth of Louisiana exports to China are targeted for retaliation, according to the U.S. Chamber of Commerce. That includes grain, crude oil and petrochemicals.

PAUL AUCOIN EXECUTIVE DIRECTOR, PORT OF SOUTH LOUISIANA "When you have tariffs and tariffs go into effect and people buy less grain, that's less tonnage. Less tonnage to us means less jobs, it's just that simple."

30,000 people work for Aucoin's port or for one of the 67 companies located within the port district. He says $23 million in future job-generating port projects could also be affected as the price of steel goes up. Steel tariffs have already hurt one food service equipment manufacturer that was in New Orleans for a recent convention.

JOE ARVIN CORPORATE EXECUTIVE CHEF, ANTUNES "We're just seeing so many barriers, the costs for us to do business. We're almost getting completely thrown out of the market in Canada."

Here in Louisiana, which backed President Trump in 2016, there are mixed feelings about the current trade disputes.

EDDY HAYES TRADE LAWYER "We have a lot of conservative businessmen and women down here in Louisiana. We voted heavily for Trump as a community. You see a lot of uneasiness in their facial expressions and in their discussions."

Some blame China for the situation.

EDDY HAYES TRADE LAWYER "So I think that's given them a little bit of a lifeline for now."

One businessman who's feeling the pinch argues the tariffs were imposed too quickly.

JUSTIN RAMIREZ ELITE ENERGY VP OF BUSINESS DEVELOPMENT "I don't think it can keep on going too much longer like this but we'll see."

Many believe political pressure from places like Louisiana will eventually force the U.S. and its trade partners to hammer out a solution. That's the hope anyway in this trade-dependent area where the future looks murky at the moment.

PAUL AUCOIN EXECUTIVE DIRECTOR, PORT OF SOUTH LOUISIANA "It is like a big cloud hanging over the area and we just want the sun to peek through and make things rosy again."

Hendrik Sybrandy, CGTN, Reserve, Louisiana.