The Georgia Chamber of Commerce is urging businesses across the state to prepare for disruptions stemming from ongoing trade tensions and shifting tariff policies in Washington.
In a virtual press conference Wednesday, Chamber President and CEO Chris Clark said the state’s economy is already beginning to feel the ripple effects of trade uncertainty, with multiple sectors — from retailers to airline travel.
Every major manufacturer in Georgia is getting parts from out of the country at some point in the supply chain, he said.
Clark believes small convenience stores in communities where residents frequently get their goods could feel the sting first and be forced to raise prices for their businesses to survive.
The Georgia Chamber is issuing a report this week to help businesses in manufacturing, retail, technology, logistics and distribution, and agribusiness navigate the shifting landscape.
Clark said that another report advising the service sector will be released next week.
The dynamics change daily, Clark said, adding that business leaders believe changes to trade policy are needed, but they should be done in a strategic way.
Larger companies are stockpiling inventory for the next two to three quarters, but many smaller businesses don’t have the capacity or cash flow to do the same, he said.
The chamber is encouraging small business owners to seek support through their banks and explore federal and state resources such as the Small Business Administration, the Georgia Department of Economic Development, and the Georgia Department of Agriculture.
Clark said companies that currently rely heavily on imports from China should explore alternative markets. He also urged businesses to communicate with Georgia’s congressional delegation in Washington to explain how the changing trade environment is affecting their operations.
Delta Air Lines is already reporting an expectation of lower travel this summer, Clark said. Trade disruptions are leading the Canadian tourism industry to expect less travel to the U.S., which will impact Georgia as well.
Clark noted that the Port of Brunswick, the nation’s number one or two port for automobile imports and exports, could also be impacted. Automakers like Mercedes-Benz and Porsche rely on stable trade routes, and reciprocal tariffs could increase costs for vehicles imported or exported.
Clark said the supply chain has been at its fullest since the pandemic recovery.
While advising businesses to stay calm, Clark said there is frustration and confusion among businesses considering that the North American Free Trade Agreement has established a reliable network for goods and products to flow through.
“And if federal government wants to change that, you’ve got to give us time as a business community to be prepared to make those changes,” he said. “You don’t make those overnight.”
