Tariff Talk Returns: What Trade Threats Could Mean for Businesses
Former President Trump has threatened to impose 25% tariffs on imports from Canada and Mexico unless stronger border security measures are implemented. While it’s unclear whether this is a genuine threat or a negotiating tactic, efforts are reportedly underway to strike a deal with Canadian Prime Minister Justin Trudeau to avert the tariffs.
During his first term, Trump frequently used tariff threats as leverage, often stepping back after securing concessions. This approach appears likely to continue in his second term, keeping businesses on edge about potential trade disruptions.
The New Trade Team
- Jamieson Greer (U.S. Trade Representative): Known for aligning with Trump’s aggressive trade policies.
- Howard Lutnick (Commerce Secretary): Expected to follow the President’s lead on trade and economic strategies.
Both appointments suggest a continuation of hardline tactics, with provisions likely to include exclusions for products deemed critical to economic or national security.
Why It Matters
- For Businesses: Tariff uncertainty complicates supply chain planning and pricing strategies. Companies reliant on imports from Canada and Mexico may face increased costs if tariffs are implemented.
- For Trade Relations: Aggressive tariff threats could strain relationships with key trading partners, impacting broader economic collaboration.
What’s Next
NAW plans to survey members in January to assess how tariffs might impact businesses. This feedback will help shape advocacy efforts as the trade agenda unfolds.
With trade policy back in the spotlight, businesses must stay prepared for the potential ripple effects of tariffs and leverage available resources to navigate uncertainty.
