Industry and Enterprise Leaders Respond to Trump’s D duties in Mexico, Canada, and China
The recent actions taken by United States President Donald Trump have left many in the business world worried and uncertain. The tariffs and duties imposed by the Trump administration on Mexico and Canada have stirred up controversy and concern among enterprise leaders, who fear the ripple effects on their businesses and supply chains.
"Tariffs on Mexico and Canada will only increase costs and exacerbate the shortage of skilled labor in the construction industry," stated Tom Deibel, CEO of the Associated General Contractors of America. "Our members are struggling to find ways to absorb the increased costs of materials and imports, and further tariffs will only make it worse."
The duty imposed on $34 billion of Chinese goods on July 6 has also attracted widespread criticism. The tariffs range from 5% to 25% on products such as electronics, pharmaceuticals, and machinery, among others. Gary Cohn, former Director of the National Economic Council, had warned that imposing tariffs on Chinese goods would trigger a trade war, and has since resigned his position.
Michael Froman, former United States Trade Representative and current Vice President of Strategic Development at Mastercard, expressed concern over the escalation of tensions in the trade environment. "I think we should be very, very careful before we start placing tariffs on anyone, because these tariffs can start a cycle that’s very hard to stop."
The duties and tariffs imposed on Mexico, Canada, and China have also caught the attention of international business organizations. The Federation of International Contractors Associations (FICA) called on the parties involved to reconsider their actions. "The continued escalation of protectionist measures only serves to reinforce the need for a more measured and collaborative approach to trade relationships," said Thomas Lane, Chairman of FICA.
In China, the foreign business community expressed concerns over the potential impact of the tariffs. "The retaliatory measures proposed by China have the potential to significantly disrupt businesses operating in the country," warned a spokesperson from the American Chamber of Commerce in China. "We urge China to reconsider their actions and negotiate a more effective solution."
Enterprises operating across borders are deeply concerned about the potential consequences of the duties and tariffs. General Motors, Caterpillar, Boeing, and Dow Chemical are some of the biggest companies that are likely to be affected by the tariffs. Harley-Davidson, the American motorcycle manufacturer, has already said it will face a significant decline in profit, and has pledged to shift its production to Mexico to avoid duties.
The tension in the international trade environment is expected to remain high in the coming months as the parties continue to negotiate. Enterprise leaders around the world will be closely following the developments and assessing the implications for their businesses.
In a statement, U.S. Commerce Secretary Wilbur Ross said the tariffs were needed to protect the American economy. "The new tariffs will target products that represent a significant and growing share of China’s multibillion-dollar trade surplus," he said. "We want to ensure a level playing field for American manufacturers and workers, and these new tariffs will achieve that goal."
As the drama unfolds, leaders in the global business community hope that the United States, China, Mexico, and Canada can find a more constructive way forward, one that prioritizes open trade and collaborative economic growth rather than protectionist measures. Only time will tell if this diplomatic effort will prove successful.
