By Marcus Kline, Senior Correspondent
President Donald Trump’s recent tariff policies are creating economic turmoil in Georgia, affecting industries from hospitality to film production, and leading to widespread uncertainty among business owners.
Georgia’s Economic Landscape in Flux
Georgia, with its expansive $900 billion economy, is experiencing wide-ranging effects from newly implemented tariffs. Traditionally known for its thriving hospitality, agricultural, and film industries, the state is now grappling with unpredictability in both domestic and international business operations.
The hospitality and wine sectors have been among the hardest hit. Many Georgia-based distributors rely heavily on imported products, particularly from European partners. The sudden spike in tariffs on goods like wine, cheese, and specialty foods has thrown the industry into disarray.
“High tariffs could cripple our business,” warned Carson Demmond, a prominent wine distributor in Atlanta. Her business, which relies on monthly shipments of French and Italian wines, has already experienced delays, increased shipping costs, and an unprecedented level of uncertainty.
Film Industry’s Growth Threatened
Georgia’s booming film industry, often dubbed the “Hollywood of the South,” has also been caught off guard. The state has lured major production companies with aggressive tax incentives, becoming a key hub for both domestic and international filmmaking.
Now, however, a proposed 100% tariff on foreign films has sparked anxiety. Stakeholders fear it could jeopardize the state’s competitiveness as a production destination.
“It’s a terrible idea,” said Darius Evans, co-president of the Georgia Production Partnership. “A tariff on foreign productions would act as a deterrent, especially after we’ve spent years cultivating Georgia’s appeal to international filmmakers.”
Evans added that this policy could create a chilling effect on future investments, potentially pushing productions to Canada or Eastern Europe where costs may become more attractive.
Clean Energy Sees a Silver Lining
Amid the general climate of concern, some sectors have seen modest gains. Georgia’s clean energy industry, especially domestic solar panel manufacturers like Qcells, has benefited from a mix of trade barriers and government support, including Biden’s Inflation Reduction Act.
By restricting foreign solar imports, the tariffs have inadvertently encouraged local manufacturing. Qcells recently expanded its Dalton-based operations, citing increased demand and protection from overseas competitors.
However, industry experts caution that these gains are limited and may be overshadowed by the broader economic slowdown that tariffs could induce if consumer prices rise and foreign retaliation continues.
Legal Pushback and Business Mobilization
The backlash against the tariffs has also reached the courtroom. Small business owners across Georgia have begun mobilizing against what they view as economically damaging and legally questionable trade restrictions.
Victor Schwartz, a veteran importer and owner of V.O.S. Selections, filed a lawsuit to challenge the tariffs, arguing they were imposed under a misapplication of the 1977 International Emergency Economic Powers Act. Joined by other small business owners from Vermont and Illinois, the coalition sought legal redress for what they claimed was government overreach.
Although the U.S. Court of International Trade initially sided with the plaintiffs, stating that the administration overstepped its authority, the ruling was paused pending appeal. The case remains unresolved but underscores growing frustration among small and mid-sized businesses who feel disproportionately burdened.
Planning Paralysis Across Industries
From boutique wine shops in Savannah to high-tech film studios in Atlanta, the prevailing sentiment is one of strategic paralysis. Business owners are finding it difficult to plan for the future amid such unpredictability.
“This kind of volatility makes long-term planning nearly impossible,” said Demmond. “It’s not just about profit margins—it’s about survival.”
Industry leaders are urging the federal government to provide more transparency and consistency in trade policy. Many believe that without a clearer path forward, Georgia risks losing its edge in several key economic areas.
Conclusion
Georgia stands at a crossroads. While a few industries are capitalizing on the shifting trade dynamics, many more are facing headwinds that threaten to erode their competitiveness. As tariffs ripple through the economy, Georgia’s business community continues to call for stability and strategic foresight in Washington.
