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An aerial perspective shows trucks lined up next to the border wall, preparing to cross into the United States at the Otay commercial port in Tijuana, Baja California, on January 22, 2025.
As President Donald Trump implements tariffs on goods from Canada, Mexico, and China, industry leaders are responding with strong opinions about the ramifications of these tariffs.
On Saturday, Peter Navarro, a senior trade adviser in the Trump administration, confirmed the enactment of a 25% tariff on imports from Mexico and Canada, alongside a 10% duty on imports from China. Notably, energy resources from Canada will incur a lower tariff rate of 10%.
Various sectors, including construction and beverage industries, expressed their concerns over how these tariffs would influence both their operations and consumer prices. Here’s what some key figures in these industries had to say:
John Murphy, Senior Vice President of the U.S. Chamber of Commerce
“While the President is correct to address significant issues like border security and the opioid crisis, the use of tariffs as a tool is without precedent and will not remedy these concerns. Instead, it risks inflating prices for American households and disrupting supply chains. The Chamber will engage with its members, particularly small businesses affected by this decision, to strategize on mitigating its economic impact. Collaborating with Congress and the administration, we aim to find effective solutions for the border and fentanyl crises.”
Shawn Fain, President of the United Auto Workers Union
“We support tariff initiatives that protect U.S. manufacturing jobs as a necessary response to longstanding anti-worker trade practices. However, we reject the notion of using workers as leverage in broader political disputes. While tariffs can prevent plant closures and reinforce domestic employment, the Trump administration’s domestic policies have previously undermined workers’ rights, leaving them vulnerable to poor wages and conditions. If the goal is truly to revive manufacturing jobs lost to previous trade agreements, then immediate negotiations to amend existing deals are crucial.”
John Bozzella, President and CEO of Alliance for Automotive Innovation
“Efficient automotive trade between North American countries contributes $300 billion to the economy, supporting jobs and vehicle affordability. We are committed to collaborating with the administration to achieve objectives that also keep our automotive industry competitive.”
Gov. Matt Blunt, President of the American Automotive Policy Council
“We believe that goods meeting the USMCA’s strict requirements shouldn’t be subject to tariff increases. U.S. automakers who have invested significantly to comply shouldn’t see their market position weakened by these tariffs, which could increase manufacturing costs and hinder workforce investment.”
Jay Timmons, President and CEO of the National Association of Manufacturers
“Despite previous tax reforms being sidelined, manufacturers are already facing pressure from rising costs. A 25% tariff on goods from Canada and Mexico could disrupt the supply chains critical to competitive manufacturing. Small and medium enterprises that may struggle to adapt quickly will experience severe repercussions, jeopardizing jobs in the process.”
Carl Harris, Chairman of the National Association of Home Builders
“At the start of his administration, President Trump aimed to lower housing costs. However, the proposed 25% tariff on goods from Canada and Mexico directly contradicts this goal. Home builders rely heavily on imports like softwood lumber from Canada, and any increase in tariffs will only inflate construction costs and, ultimately, home prices for consumers.”
David McCall, International President of the United Steelworkers Union
“While reforms are needed in our trade system, targeting Canada—a key ally and partner—is not the answer. Our economies are interconnected, and it is crucial that we focus on addressing trade issues with nations like China, while preserving our relationships with partners that bolster our national security.”
Tom Madrecki, Vice President of Supply Chain Resiliency at the Consumer Brands Association
“Imposing tariffs on goods from Mexico and Canada could lead to heightened consumer prices and retaliation from those countries against U.S. exports. Although many consumer packaged goods companies source their ingredients domestically, certain items are essential imports, which highlights the need for dialogue with our neighboring countries to mitigate potential inflation on groceries.”
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The Distilled Spirits Council of the U.S., Chamber of the Tequila Industry, and Spirits Canada
“Our organizations are dedicated to finding collaborative solutions to prevent the implementation of tariffs on distilled spirits, aware that such actions could harm the industry across North America and lead to cycles of retaliatory tariffs.”
David French, Executive Vice President of Government Relations at the National Retail Federation
“We urge the Trump administration and our trade partners to negotiate swiftly to resolve lingering border security concerns. Implementing high tariffs on our closest trade partners is a drastic move, and we encourage all sides to engage in negotiations to avoid burdening American families and businesses with increased costs.”
Michael Hanson, Senior Executive Vice President at the Retail Industry Leaders Association
“We recognize the president’s intentions but believe that swift negotiations among the four nations are essential before February 4. Broad tariffs could destabilize our economy and hinder efforts to lower inflation.”
Shannon Williams, CEO of the Home Furnishings Association
“Retailers expect that manufacturers will begin to raise prices shortly to accommodate the costs associated with the new tariffs.”
Retailers Prepare for Price Hikes
Lowe’s CEO, Marvin Ellison, stated, “We’re prepared to act and have developed strategies to mitigate potential impacts.”
Levi’s financial officer, Harmit Singh, highlighted that while they aim to shield consumers from price hikes, costs may have to be passed through if necessary to maintain business viability.
Shein’s executive chairman, Donald Tang, expressed confidence in maintaining affordable pricing if tariffs are applied consistently.
Best Buy’s CEO, Corie Barry, noted that any increased costs due to tariffs would be shared between the company, vendors, and consumers, stating, “These are essential goods, and increased prices are not beneficial.”
Steve Madden’s CEO, Edward Rosenfeld, mentioned that the company has been proactive in adjusting logistics to mitigate tariff impacts.
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