As tariffs loom, Georgia posts record year for international trade

But as threats of retaliatory tariffs escalate, it also heightens Georgia’s economic exposure as more Peach State producers rely on their products being shipped to foreign shores. Exports account for roughly 6% of Georgia’s gross domestic product.

“You hit that 6%, you hit the economy of the state,” State Economist Robert Buschman told the Georgia House Appropriations Committee on Wednesday, referring to the potential downsides of escalating tariffs.

Georgia’s top exports are civilian aircraft and ancillary parts, a sign of strength for the state’s burgeoning aerospace sector. Other forms of advanced manufacturing, including motor vehicles, computers, telephone sets and medical devices, round out the state’s top five exports.

Georgia now ranks sixth in the U.S. for its dollar value of total trade, one spot higher than it was in 2023. Gov. Brian Kemp, who celebrated Georgia’s trade growth and that it outpaced the national average of 2%, also touted that the vast majority of the state’s exporters are small businesses.

“With more than 87% of Georgia exporters being small businesses, these record-breaking numbers represent economic opportunity and success in every corner of the state,” he said in a news release.

For much of Georgia’s history, it has served as the South’s logistics hub, growing in recent decades into an international ferry way of trade and transport.

Atlanta’s rail network is the most robust in the Southeast, and the city is home to the world’s busiest airport. The Ports of Savannah and Brunswick also serve as trade gateways, with the latter recently supplanting Baltimore as the nation’s busiest auto port.

“Georgia’s diverse industry base and connectivity to more than 200 global markets create a more resilient state economy,” Georgia Department of Economic Development Commissioner Pat Wilson said in the release. “Georgia offers extensive partnerships, expert guidance on export strategies and top-tier infrastructure — including deep-water ports, railways, highways and airports — that empower businesses to thrive in the global market.”

Credit: Courtesy of Georgia Ports Authority

Credit: Courtesy of Georgia Ports Authority

That interconnectivity is a double-edged sword, according to economists. The benefits that come from increasing international trade also heighten local exposure to price hikes from tariffs, blockades and other forms of economic warfare.

President Donald Trump has made tariffs a cornerstone of his economic agenda. Since he took office last month, Trump has used tariffs, either enacted or threatened, to try to bring trade partners to heel, namely Canada, China and Mexico. Those three countries also buy the largest amount of Peach State exports, while Mexico, China and South Korea comprise Georgia’s largest import markets.

A steep 25% tariff on steel and aluminum, raw metals used in many products produced in Georgia’s factories and melded into consumer goods, is poised to go into effect next month. Tariffs implemented by the U.S. are expected to increase the price of foreign supplies, while retaliatory measures from other countries could hit American exports.

Lizann Grupalo, Georgia’s deputy commissioner of international trade, credited the state’s foreign relations network with fostering its export and import growth. Countries where Georgia maintains full-time economic development representation accounted for two-third of exports and 83% of bilateral trade in 2024.

“Georgia’s international representatives are a key link to global markets, providing on the ground insights to navigate an ever-changing global environment,” Grupalo said in the release.