Columbia, SC (WLTX) - South Carolina is feeling the effects of tariffs imposed by the United States.
"The tariffs that have been imposed by the united states on steel and aluminum imports have hurt a lot of manufacturing industries in South Carolina," says William Hauk, associate professor of economics at the University of South Carolina.
Companies like BMW in Spartanburg, or Volvo in Ridgeville are making adjustments, cutting potential jobs to make up for the tariffs on imported aluminum and steel.
Tariffs on imported television parts were the main reason why Element Electronics in Winnsboro could be letting go of 126 employees, more than 90 percent of their staff.
"That's raising the cost of inputs that a lot of firms use," says Hauk. "Then at the same time, when other companies impose tariffs on us, that's going to make it harder for us to sell the goods that we produce here in South Carolina overseas as well."
Soybean farms are being hurt by tariffs overseas. What is the benefit? Hauk says tariffs on imported goods help protect domestic industries.
"So, the steel and aluminum industry, by having these tariffs in place, isn't facing quite as stiff foreign competition."
The downside is that if you import goods for your business, you will be paying more to make your products. That price could then be placed on the customer.
"The goal is to get some America's trading partners to sit-down with us and negotiate some outstanding disputes," says Hauk. "Is it going to work? Well, that remains to be seen, but in the meantime we know that it is definitely hurting some of the businesses in South Carolina."