Today, the Georgia Chamber of Commerce published its fourth report on the impact of the ongoing global trade war on Georgia. The most recent report focuses on the trade war’s effect on Georgia’s service economy and what businesses in this vital sector can do to thrive in the face of global business uncertainty. A copy of the report is available here.

More than 4 million Georgians are employed in the state’s service industries. Service industries include professional and technical services such as engineering and accounting, financial services, and transportation services.

Some of the potential barriers for Georgia's service economy include dramatic increases in digital service taxes from foreign countries, outright bans on procurement for public projects, decreased flow of goods through Georgia’s two ports and Hartsfield-Jackson Atlanta International Airport, onerous licensure requirements for Georgians who want to work abroad, and a reduction in tourism income if countries discourage citizens from traveling to Georgia.

Chris Clark, President & CEO of the Georgia Chamber said in a recorded message:

“Any disruptions to these services will be felt in our economy. Here’s just a few examples.

• In almost every community you can find accountants, engineers, lawyers, and consultants that work for Georgia-based firms or foreign firms that set up shop here in Georgia.   

• Atlanta is home to “Transaction Alley”, where 70 percent of the world’s credit, debit, and digital transactions are processed. You can obviously see the potential there.   

• Columbus is home to some of the world’s most important payment processing service providers.  

• Augusta is home to one of the strongest networks of cybersecurity providers anywhere.   

• And of course, the normal trade barriers we’ve been talking about can limit the flow of goods in and out of the Ports of Brunswick and Savannah and Hartsfield-Jackson International Airport.  

The question we aim to address in this report is: what can and should your business do and your community do to mitigate risk and navigate these turbulent times?

• I’ve been saying this since January the first round of tariffs was announced in January, stay calm. Continue to focus on your long-term goals and don’t get caught up in the day-to-day noise and the back-and-forth in Washington.  

• Continue to engage with the Georgia Chamber so we can advocate for you with our federal partners, including our congressional delegation and partners like the U.S. Chamber of Commerce. 

• Be sure to let your elected officials know how this is impacting you and your business.  

• I do want to especially say thank you to SBA Administrator Kelly Loeffler and her team who have been incredible partners. I encourage you to visit your local SBA office as you move through these issues.  

• And our congressional delegation has responded on the spot, every time we’ve reached out to them.  

• Specifically to protect Georgia’s service providers, we suggest you conduct internal reviews, identifying any exposure to countries considering retaliatory measures.   

• Companies should enhance their international compliance efforts by investing in robust regulatory and legal teams to stay competitive and well-informed, while also prioritizing stronger cybersecurity measures.    

• And look at new strategic alliances abroad, find the local firms in markets where you do business, look for more domestic suppliers and make sure you are being compliant.”

Chris’ recorded message is available here.

The United States trade surplus in services rose to $293 billion in 2024, an increase of 5% from 2023 and 22% from 2022. The U.S. service sector carries a trade surplus with almost every trading partner around the globe, most notably, China, the European Union, Canada, and Mexico.

Today, businesses in the service sector account for 84% of private sector non-farm workers. Georgia’s excellent business climate has attracted the headquarters of some of the largest service-providing companies in the U.S. In 2022, Georgia carried a $27 billion services trade surplus led by sectors such as business, professional & technical services, financial services, and transportation services. Georgia’s leading service export partners include China ($1.2 billion), Canada ($2.1 billion), and Mexico ($1.1 billion). For digital services alone, Georgia has $5 billion in service exports to the EU and $2.1 billion to the UK.