Trump tariffs prompt warnings from trade groups

President Donald Trump’s move to impose tariffs on goods from Mexico, Canada and add further tariffs on China has sparked reactions from several trade groups, who warned the added taxes on imports will drive up costs for American consumers and producers.

The president signed an executive order on Saturday that authorized a 25% tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China, to go into effect on Tuesday.

The tariffs on goods from Mexico and Canada were both put on hold Monday for another month after the leaders of both countries agreed to concessions and continued discussions with Trump on how a trade war could be averted.

But if an agreement is not reached, the tariffs on the two countries, as well as their threatened retaliatory tariffs on the U.S., could still go into effect.

AUTOMOTIVE GROUPS REACT TO TRUMP TARIFFS ON IMPORTS FROM CANADA, MEXICO, CHINA

Here are the reactions from several trade groups on the new tariffs:

American Farm Bureau Federation

The American Farm Bureau said President Zippy Duvall “expressed alarm about potential harm to farmers” as a result of the new tariffs.

“Farm Bureau members support the goals of security and ensuring fair trade with our North American neighbors and China, but, unfortunately, we know from experience that farmers and rural communities will bear the brunt of retaliation,” Duval said in a statement.

The Farm Bureau chief pointed out that more than 80% of America’s supply of potash, a key fertilizer ingredient, comes from Canada, and warned tariffs that increase fertilizer prices “threaten to deliver another blow to the finances of farm families already grappling with inflation and high supply costs.”

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Duvall further noted that more than 20% of U.S. farm income comes from exports, and Mexico, Canada and China are the top three buyers. Combined, he said, those markets account for nearly half of all exports by value.

Consumer Brands Association

Tom Madrecki, the Consumer Brands Association’s vice president of supply chain resiliency, said the trade association supports an “America First Trade Policy,” but warned tariffs on all imported goods from Mexico and Canada “could lead to higher consumer prices and retaliation against U.S. exporters.”

He added, “We urge leaders in Mexico and Canada to work with President Trump to protect consumers’ access to affordable products and remove tariffs that could contribute to grocery inflation.”

National Association of Home Builders

The National Association of Home Builders (NAHB) warned that the tariffs on Canadian and Mexican goods would hinder home builders and drive up the cost of housing further, and urged the Trump administration to reconsider the move.

“More than 70% of the imports of two essential materials that home builders rely on — softwood lumber and gypsum (used for drywall) — come from Canada and Mexico, respectively,” NAHB Chairman Carl Harris said. 

“Tariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying for the tariffs in the form of higher home prices.”

National Association of Manufacturers

National Association of Manufacturers President and CEO Jay Timmons praised the success of the United States-Mexico-Canada Agreement that President Trump implemented during his first term, but warned that tariffs on Canada and Mexico threatened U.S. supply chains.

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“The ripple effects will be severe, particularly for small and medium-sized manufacturers that lack the flexibility and capital to rapidly find alternative suppliers or absorb skyrocketing energy costs,” Timmons said. “These businesses—employing millions of American workers—will face significant disruptions. Ultimately, manufacturers will bear the brunt of these tariffs, undermining our ability to sell our products at a competitive price and putting American jobs at risk.”

National Retail Federation

“We support the Trump administration’s goal of strengthening trade relationships and creating fair and favorable terms for America,” National Retail Federation Executive Vice President of Government Relations David French said in a statement. “But imposing steep tariffs on three of our closest trading partners is a serious step.”

The NRF encouraged “all parties to continue negotiating to find solutions that will strengthen trade relationships and avoid shifting the costs of shared policy failures onto the backs of American families, workers and small businesses.”

U.S. Chamber of Commerce

U.S. Chamber of Commerce leaders warned both before and after Trump’s announcement that tariffs could cause economic harm to Americans.

“The President is right to focus on major problems like our broken border and the scourge of fentanyl, but the imposition of tariffs under IEEPA is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains,” Chamber Senior Vice President and Head of International John Murphy said in a statement following the move.

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Last week, both Murphy and U.S. Chamber President and CEO Suzanne Clark warned against the U.S. imposing blanket tariffs, with Clark saying in a statement, “The bottom line is this: tariffs are a tax paid by Americans, and their broad and indiscriminate use would stifle growth at the worst possible time.’