Georgia Chamber CEO: Companies Need Time to Adjust to Trump’s New Trade Reality

Along the railroads and highways of Georgia and the broader U.S., shipping containers and tractor-trailers are moving, overflowing with goods as a result of inventory stockpiling amid an ongoing trade war. 

“The supply chain right now is as full as it’s right after COVID,” Georgia Chamber of Commerce CEO Chris Clark said during a briefing April 16. “Every container ship is full, every truck driver that’s available is moving goods and products.”

That’s all thanks to the 90-day pause on President Trump’s harshest reciprocal tariffs announced April 2. 

Ships making their way across the world, however, are already getting lighter, as orders have reportedly plummeted from China, which Mr. Trump slapped with a 145 percent levy even while lowering the across-the-board rate to 10 percent. 

That dichotomy — full trains on the ground here but less-laden carriers plying the ocean— is indicative of the fits and starts facing the U.S. economy amid the trade war.

Mr. Clark said the idea of removing trade barriers for U.S. producers around the world and leveling the playing field with China is a welcome one.

“But there are good ways to do this and we can do that with a much more judicious process,” he said.

What companies need, Mr. Clark said, is more “runway” to adjust to monumental shifts in global trading patterns. 

“What I’ve been saying now for the last three months is for Georgia business to remain calm. There’s a little bit of whiplash going on. Businesses like stability. We like to know what the rules are. We’ll abide by those rules, but give us time to ramp up.”

Many public companies have thrown out their 2025 guidance, citing upheaval in trade policy and financial markets, which have dented consumer confidence, affecting even services like film and travel. Delta Air Lines Inc. has said it would reduce flights during the second half of the year as customers pull back. 

“You’ve already seen Canadian tourism numbers drop precipitously over the last week, which means fewer people driving through Georgia, flying through Georgia, so again, this impact could be in multiple sectors and we’re encouraging every sector to be prepared,” Mr. Clark said. 

Canadians were Georgia’s top guests in 2023, with 370,100 visitors spending more than $167.3 million here that year. Some Canadians, however, have boycotted the U.S. amid President Donald Trump’s onslaught of tariffs and threats to strong-arm Canada into becoming the 51st state.  

During the call, Mr. Clark rarely referred to Mr. Trump by name, instead referencing the uncertainty caused by “federal policy” that has often changed by fiat since the president came into office 100 days ago. 

For companies, the erratic implementation of the Trump trade agenda has touched off a scramble to secure supplies and mitigate tariffs by various means. If companies believe their source markets are going to be hit, stockpiling can be a viable strategy, Mr. Clark said.  

But it’s not always an option for smaller businesses, who lack the buying power and liquid capital needed to land big orders at a time of strain for the global economy. 

And besides raising costs, tariffs can have unforeseen side effects, including ever-changing retaliatory measures imposed by other countries that could eventually bite Georgia companies and producers. 

Farm products are often the first to feel the brunt of retaliation, and Mr. Clark said the chamber is keeping a close eye on how China’s levies in particular will affect the state’s poultry and pecan industries. Many producers are already looking for replacement markets, like the pecan sellers making inroads in India, for instance.

While the trade war affects just about every company in the state, Georgia’s auto makers are fighting on multiple fronts. Kia and Hyundai make cars in Georgia using many imported parts that will be hit with a 25 percent tariff starting May 3. They also import many fully assembled models; on those, it’s either pass on costs to consumers or see profit margins fall.

Companies like Mercedes-Benz USA, which has its headquarters in Atlanta, are being impacted on multiple fronts. In addition to import taxes on finished vehicles and soon on parts, the company since March has faced a 25 percent levy on imported steel and aluminum used in its Alabama and South Carolina. 

After lobbying by business groups, Mr. Trump signed an executive order April 29 that slightly lessened the blow for car importers, clarifying that while the 25 percent rate remains in effect, auto importers would not also be hit with stacking tariffs on metals and other categories. Cars assembled in the U.S. also qualify for an annual “tariff offset” designed to provide some relief as they shift to domestic production.

Mr. Clark said the “ripple effect” from all this could eventually hit Georgia’s ports, which account for about one in eight jobs in the state. (Brunswick is the top ocean port for cars entering the country.)

Whatever happens, Mr. Clark added, companies should already be diversifying their supply chains, not only because of tariffs but also due to broader potential disruptions. 

“I’ve encouraged the small businesses I’ve talked to to look at India, look at Indonesia, look at other market partners right now, and go ahead and start ordering and diversifying your product line today. You should not wait thinking in 90 days this will all go away and be better. Particularly on the Chinese front, we’re in for the long haul here.” 

The pause on the heavier reciprocal tariffs until July offers a slight reprieve, but companies have no time to waste in shoring up their supply chains.

“No, 90 days is not enough time to insulate you.” 

Recommendations from the Georgia Chamber for businesses navigating tariff uncertainty: 

• Utilizing Georgia’s Foreign Trade Zones, which can help delay or avoid duties on imports until goods enter U.S. commerce;
  
• Optimizing models of distribution by routing goods through Georgia’s inland ports or the Ports of Savannah and Brunswick so businesses can get what they need quicker;
  
• Better implementation of AI and other cutting-edge technologies so businesses can be more nimble;
  
• Stockpiling orders;
  
• Working with your creditors or lenders to secure the capital needed;
  
• Seeking out domestic or foreign suppliers from non-impacted markets or markets that are eager to secure trade agreements, like India.
  
• And of course, leveraging the preexisting expertise and programs with organizations like the Georgia Chamber, GDEcD, or the Department of Agriculture to increase business intelligence and find new markets to sell your goods.
  
• We also strongly encourage businesses to remain engaged with us as we continue conversations with Georgia’s Congressional Delegation, advocating for free and fair trade. And they should also communicate directly with their members of Congress, telling them how tariffs will impact their business.

See the detailed report issued by the chamber: 

April-16-2025-–-GUIDANCE-ADVICE-on-TARIFFS-AND-TRADE-REGULATIONS-1-1