Uncertainty looms across multiple MN industries as Trump imposes tariffs
(FOX 9) - President Donald Trump announced sweeping tariffs will go into effect on Tuesday on imports from Canada, Mexico, and China.
President Trump is making good on a campaign pledge. He said the tariffs are penalties to stop the flow of illegal drugs and illegal immigrants coming across the borders, and to address billions of dollars of trade deficits.
Trade wars brewing
Economic emergency declared:
President Donald Trump declared an economic emergency to impose tariffs on America’s neighbors. The order places 25% duties on imports from Canada and Mexico. Separately, an additional 10% duties on imports from China, on top of existing tariffs.
He points to both economic and security reasons for this move.
"Number one is the people that are poured into our country so horribly and so much. Number two are the drugs, fentanyl and everything else that have come into the country. Number three are the massive subsidies that we’re giving to Canada and to Mexico in the form of deficits," said Trump.
According to the U.S. ambassador to Canada, one-third of what Canada sells into the U.S. is related to energy. About 60 percent of U.S. crude oil imports are from Canada.
Local perspective:
Multiple industries across Minnesota are concerned about potential negative impacts.
"Groups as more conservative like the Chamber of Commerce have come out against it. The union that represents the machinists have come out against it and says it will cost jobs. The home builders, and this one is scary because we need more homes, have said that it will greatly increase the cost of hauling because of the building materials that are used in homes sometimes are from places like Canada," said Sen. Amy Klobucar (D-MN). "The other one is the Association of Manufacturers. Minnesota is a big manufacturing state, tends to be in things like medical devices and the like. But we're a big manufacturing state. And the association there, the national association, has come out strongly against these tariffs, saying it's going to hurt manufacturing. I think we should listen to some of the people that actually do this work, whether they're business owners or workers. They understand what this is going to mean."
Along the Canadian border, International Falls Mayor Drake Dill said there are many questions on how it will impact prices and businesses in the area.
"This is rather monumental. It’s a dramatic departure from what we’re used to," said Dill. "With the citizenry of Fort Frances, Ontario and our city of International Falls, a lot of back and forth for different goods and services. Until there’s more clarity, I think it’s really going to be wait and see."
What's the response?:
Canada and Mexico announced they will retaliate with tariffs of their own. China’s Ministry of Foreign Affairs also said their government will take countermeasures.