The growth of economy in Texas is directly related to exported product to the other countries. Among all of them, China has been loyal costumers for years. With a steady tax for the items, Texas products are known as the competitive brands in China market. Thus, changing the tax value will definitely change everything.
The trade war with China had been pushed to the surface by US President, Donald Trump, even before he was elected as the highest leader. He explained that the state suffered a deficit of 500 billion dollar a year. Trump also highlighted that the war with China had been lost by incompetent people in the past.
This move has been explicitly explained during his election speech. He was planning to protect US from the world’s second largest economy. Sadly, many people voluntarily went to Trump’s side after hearing the statement. Some of them are thousand of Texas Farmer who don’t see how hurtful the decision yet.
Some people just don’t believe that the fire is hot until they get burned. It is probably the best way to describe how the economy in Texas is going to fall after the new policy applied. Upon the levied tariff upon Chinese goods that worth up to 34 billion dollars, China does similar steps. Any exports goods from US will have higher tax. The rough calculation shows that the value is approximately 34 billion dollars also.
Right after that, the reality hits the farmers. With an increasing tax for the exported goods that go to China, the price will be rocketed. As the result, the Texas products will be out of the options for China market. They will seek for new alternatives with cheaper price. Then, the number of exported goods from Texas will be decreasing. Unless the government find new market for exported products, the farmers will suffer for an unknown period.
The Chinese commerce minister has predicted this outcome, saying that the act will “prove to counter-productive and damaging”. The effects will directly hit both the farmers and the government. Texas farmers will get the biggest blow, as billion trading takes place every year.
In order to take care of state economy development, it cannot only stop on the production sector only. Many farmers have high hopes on the exported products. However, a single law turns the whole table. Now the economy in Texas is at risk of bankruptcy.