President Trump’s steel and aluminum tariff hike sparks alarm across key Georgia industries
By Owen Walsh, Senior Correspondent
On May 31, 2025, businesses throughout Georgia voiced growing concern over economic instability after former President Donald Trump announced plans to double tariffs on imported steel and aluminum—from 25% to 50%—effective June 4. The announcement forms part of a broader strategy aimed at strengthening domestic manufacturing but has triggered alarm across several major state industries.
Adding to the uncertainty is a proposed 100% tariff on foreign films, a move that could significantly disrupt Georgia’s thriving entertainment sector and hinder international collaborations.
Impact on Wine, Hospitality, and Import-Reliant Businesses
Georgia’s wine and hospitality industries are bracing for significant disruptions due to the new tariff regime. Many local businesses depend heavily on European imports for their product offerings. With shipping delays already being reported and operating costs on the rise, businesses that rely on narrow profit margins may face difficult choices.
Distributors, restaurants, and specialty retailers that depend on international goods are worried that consumers will turn away if prices rise too steeply. Smaller importers are particularly vulnerable, as they lack the financial buffer to absorb such substantial increases in supply costs. If tariffs remain in place for an extended period, some business owners fear closures may become unavoidable.
Restaurants known for their imported wine selections and specialty food offerings are already rewriting menus to include more domestic products. While this pivot could promote local goods, it limits consumer choice and dilutes the unique offerings that have distinguished Georgia’s hospitality scene.
Film Industry Faces Critical Questions
Georgia has become a significant hub for film production, drawing projects from across the globe due to its favorable tax incentives and robust infrastructure. However, the new proposal for a 100% tariff on foreign films has cast a shadow over this growing industry.
Studio executives and production companies have expressed concern that the tariffs could deter international collaborations, limit the diversity of content available for filming in Georgia, and reduce the state’s appeal as a global production site. These developments threaten to derail the momentum the industry has built over the past decade, potentially resulting in lost jobs and reduced economic impact.
Many professionals in the field are calling for clearer guidelines and reassurances to maintain Georgia’s competitive position. Without them, there’s fear the state could see a decline in film-related investments and a shift in production to more globally accessible locations.
Manufacturing and Clean Energy: Mixed Reactions
Not all sectors view the tariff changes negatively. Certain domestic manufacturers, especially in the clean energy space, could benefit from reduced competition from imports. Solar panel producers in Georgia, for example, are expected to see a rise in demand as imported panels become more expensive. This could lead to expansions and job growth in the renewable energy sector.
However, this benefit is counterbalanced by the challenges faced by manufacturers that rely on imported raw materials. Increased costs for steel and aluminum are affecting planning cycles, pricing strategies, and production volumes. Some businesses are already scaling back investments and delaying expansion due to the uncertainty surrounding future costs.
For many, the unpredictability of trade policies is more damaging than the tariffs themselves. Companies need stability to make long-term decisions, and the current environment of shifting regulations makes it difficult to plan ahead.
Calls for Policy Clarity and Support
Business leaders across the state are urging policymakers to provide clearer direction. There is a widespread call for strategies that account for both national economic interests and the practical realities faced by businesses on the ground.
Proposals being discussed include temporary tariff relief for small businesses, tax incentives to offset increased costs, and transparent timelines for policy changes. Many believe that with thoughtful support, Georgia businesses can weather the storm and emerge stronger.
However, the clock is ticking. As the June 4 implementation date looms, companies are left scrambling to adjust supply chains, manage customer expectations, and re-evaluate financial projections.
Conclusion
Georgia’s economic landscape is undergoing a stress test. While some sectors may see short-term advantages, the prevailing theme across industries is one of anxiety and caution. The effectiveness of these tariffs remains to be seen, but without swift and thoughtful policy guidance, Georgia’s diverse economy could face prolonged turbulence.