News Summary
Georgia’s economy is under pressure as rising tariffs affect businesses and consumers. The Georgia Chamber of Commerce highlights significant impacts on retail and construction, particularly for small businesses reliant on imports. Store owners are making operational changes to cope with increasing costs while local dealerships express concerns about potential price hikes. Despite challenges, Georgia’s strong position in international trade continues to be a vital aspect of its economy.
Milledgeville – Georgia’s economy is facing challenges as rising tariffs have started to impact businesses and consumers across the state. With international trade being a crucial pillar of Georgia’s economic landscape, the repercussions of these tariffs are becoming increasingly evident. The Georgia Chamber of Commerce recently reported that in 2024, the state achieved $198.7 billion in foreign trade, making it the sixth-largest state for international trade in the United States.
As the state benefits from global investments and trade partnerships, the new tariffs are raising costs for a variety of businesses, especially those reliant on imported goods. Arthur Merchant, owner of Milledgeville Liquidation Depot, has felt the weight of these changes firsthand. His store, which specializes in flooring, appliances, and furniture, has seen significant price increases from his supplier, Shaw Floors. Over the course of 2025, Merchant’s flooring costs have surged by more than 20% due to escalating tariffs imposed on imports from countries like China, Vietnam, and Indonesia.
The specific tariff increases have varied throughout the year, starting with a 4% rise in February, followed by a 10% hike in April, and an additional 8% increase anticipated in September. Merchant describes this situation as “self-destructive behavior,” pointing to the inflationary effect that tariffs impose not just on business operations but on the broader consumer market. With profit margins typically ranging from 4% to 14% for small businesses like his, these increasing costs are unsustainable.
To adapt to the pressure of rising expenses, Merchant has made several operational changes. He has reduced services, including delivery and staffing, and switched to cash-only transactions. These adjustments reflect a broader need among small businesses to cope with the financial implications of tariffs, which Merchant emphasizes are not the fault of business owners but rather a result of national policy decisions.
Beyond the immediate impact on retail, the construction industry in Georgia also feels the consequences of soaring import costs. Local contractors, including those who rely on discount stores like Merchant’s, are finding it increasingly difficult to manage project budgets while ensuring affordability. Merchant’s situation encapsulates a broader trend in Georgia, where rising tariff costs are juxtaposed with the state’s booming exports.
Additionally, Milledgeville recently gained recognition by being named one of the top 15 small towns to visit in 2025 by a prestigious magazine, coinciding with the 100th birthday celebration of renowned author Flannery O’Connor. O’Connor, whose Southern Gothic writings have left a lasting legacy, draws tourists interested in the town’s rich literary history and ongoing cultural contributions. Local tourism officials emphasize the town’s heritage and its efforts to promote attractions like its well-regarded trolley tours.
At the national level, the Trump administration has taken steps to use tariffs as a strategy to bolster American manufacturing and exert pressure on various trade partners. Recently, a pause on reciprocal tariffs for most nations was instituted for 90 days, while the tax rate on Chinese goods was increased to 125%. Alongside these measures, a general 10% tariff has been applied across a range of goods, impacting markets in unexpected ways.
Concerns continue to arise regarding potential increases in car prices due to tariffs, particularly affecting local dealerships like Hyundai of Milledgeville. These dealerships are advising customers to make purchases soon to sidestep potential future price hikes. While experts suggest that any increases from tariffs could result in competitive pricing in the automotive market, consumers remain wary, evaluating their purchasing decisions with the influence of tariffs in mind.
Overall, the dual pressures of international trade dynamics and national tariff policies present a complex landscape for Georgia’s economy. While the state’s position in the global marketplace remains strong, the balancing act between booming exports and the rising costs of imports continues to challenge businesses and consumers alike.
Deeper Dive: News & Info About This Topic
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Author: STAFF HERE AUGUSTA WRITER
AUGUSTA STAFF WRITER The AUGUSTA STAFF WRITER represents the experienced team at HEREAugusta.com, your go-to source for actionable local news and information in Augusta, Richmond County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Arts in the Heart Festival, Westobou Festival, and Masters Week. Our coverage extends to key organizations like the Augusta Metro Chamber of Commerce and Greater Augusta Arts Council, plus leading businesses in manufacturing and healthcare that power the local economy such as Textron Specialized Vehicles, Cardinal Health, and Nutrien. As part of the broader HERE network, including HEREAtlanta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
