Chinese Trade War Could Have A $3.3B Impact On Houston's Growing Export Industry
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Houston's exports have been growing rapidly as trade through the Gulf of Mexico increases, driving industrial growth around the Port of Houston. New tariffs and a potential trade war with China have put $3.3B of that growth in jeopardy, according to a new report from the Greater Houston Partnership.
Houston's booming petrochemical industry will take the biggest blow, with $2.5B in petrochemical exports to China now facing a 25% tariff. Agricultural products, vehicles and other exports moving through Houston could also face tariffs.
The Greater Houston Partnership and the city have been forging new connections with Chinese companies and municipalities. Mayor Sylvester Turner led a trade delegation to China late last year looking to increase cooperation between Houston and the Asian country in sectors such as energy, medicine and banking. A major goal of the delegation was securing a petrochemical plant, warehouse or factory from a Chinese company in the Houston area. The new tariffs could complicate such a deal.