Here's how much Pa. companies are paying in tariffs

Pennsylvania businesses and consumers have been paying a pretty penny ever since the United States entered into an ongoing trade war with foreign countries.

President Donald J. Trump and his administration in March this year imposed additional steel and aluminum tariffs from all countries except Argentina and Australia. Foreign countries in response imposed retaliatory tariffs.

The trade war is costing U.S. companies millions of dollars.

Pennsylvania businesses alone are paying $45 million more, or 55 percent, per month this year compared to 2017, according to new data released Thursday by Tariffs Hurt the Heartland, a nationwide campaign against tariffs.

The data was compiled by The Trade Partnership, which based data off state-level Census Bureau numbers.

Nationwide, the amount of tariffs paid increased by $1.4 billion — or 45 percent — in August 2018, the most recent month available, compared to tariffs paid in 2017.

The $45 million-per-month figure in Pennsylvania is the fifth-largest among all states, behind Illinois ($70 million), Michigan ($71 million), California $116 million) and Texas ($166 million), according to The Trade Partnership.

Steel and aluminum were once duty free, but after Section 232, U.S. companies paid an additional $1.5 billion, according to the Partnership. The tariffs on steel cost Pennsylvania companies nearly $100 million alone.

Since the first round of additional tariffs went into effect on March 23, and through and including August, Pennsylvania paid more than $98 million in steel tariffs, according to the data.

The $98 million figure is once again the fifth-largest in the United States, behind Illinois ($103 million), California ($104 million), Michigan ($139 million) and Texas, which paid $389 million, according to the Partnership.

From March through August, Pennsylvania paid over $17.4 million in aluminum tariffs, a 1,187 percent increase over the same timeframe in 2017, according to the data.

The Trump administration in July and August imposed two rounds of tariffs on Chinese-made goods under Section 301 of the Trade Act of 1974: List 1, comprising $34 billion worth of imports; and List 2, comprising $16 billion in goods.

Pennsylvania in July paid $9.8 million in tariffs, up from $1.6 million in 2017, according to Partnership data. The state paid $16 million in August, up from $1.5 million in 2017.

Data compiled released by Tariffs Hurt the Heartland only includes information through August, the most recent available month, but the Trump administration has since imposed additional rounds of tariffs — with more to come.

Additional tariffs on about $200 billion worth of Chinese imports went into effect on Sept. 24, and China responded with additional tariffs on $60 billion U.S. goods, which went effect on the same day.

Angela Hofmann, spokeswoman for Tariffs Hurt the Heartland, said once the additional $200 billion in goods goes into effect, "these numbers will continue to trend sharply upward."

Philadelphia companies are bracing for the affects of additional tariffs, including Bassetts Ice Cream, whose business in China accounts for almost 20 percent of the company's total revenue.

"I can only imagine that this will have a very detrimental result on our sales there," said President Michael Strange in an earlier interview. "This is likely to be exacerbated by any negative implications of purchasing U.S.-made products which the China government may promulgate to its citizens."

"In a nutshell, we are very concerned about our ability to remain competitive in China unless the 'trade war' is resolved fairly soon," Strange said.

Area spirits makers are also preparing after the EU and China announced a 25 percent tariff on American Whiskey and bourbon. Tariffs could stymie their international growth as the American market matures and becomes highly competitive.

“New Liberty Distillery has been looking to expand into new markets in Europe and around the globe," said Robert Cassell, co-founder and master distiller of Philadelphia-based Millstone Spirits Group, in a statement.

"Any price anxiety created due to tariffs makes it that much harder for our company to continue its growth," Cassell said. "Hopefully, the United States and the EU will come together and resolve the tariff issue quickly."