Businesses Say Tariffs Hurt; UAW Says Action Move to 'End Free Trade Disaster'

Two industrial unions, however, struck different notes; the United Steelworkers, which represents aluminum and steelworkers in Canada and the U.S., made a distinction between Canada and Mexico, but still said broad tariffs aren't the way to proceed. The United Autoworkers issued a statement that the Trump administration is listening to its views on future planned auto tariffs, and said if corporate America raises prices in the wake of tariffs -- what it called price-gouging "because they don’t want to pay their fair share, corporate America bears the blame for that decision."

"Corporations have been driving a non-stop race to the bottom by killing good blue-collar jobs in America to go exploit some poor worker in another country by paying poverty wages. Tariffs are a powerful tool in the toolbox for undoing the injustice of anti-worker trade deals. We are glad to see an American president take aggressive action on ending the free trade disaster that has dropped like a bomb on the working class," the UAW wrote.

No sector will be more affected by the tariffs than auto manufacturing, as even cars and trucks assembled in the U.S. incorporate Mexican and Canadian parts (and metals).

The trade group that represents Detroit's Big Three said that vehicles and parts that meet USMCA's rule of origin "should be exempt from the tariff increase. Our American automakers, who invested billions in the U.S. to meet these requirements, should not have their competitiveness undermined by tariffs that will raise the cost of building vehicles in the United States and stymie investment in the American workforce, while our competitors from outside of North America benefit from easy access to our home market."

With Trump's decision, a car imported from Japan would face only a 2.5% tariff, while one imported from Mexico would owe 10 times that figure.

The trade group that represents all foreign auto manufacturers other than Stellantis that produce in the U.S. noted that 73% of U.S. auto parts exports and 51% of its vehicle exports are to either Canada or Mexico.

The Border Trade Alliance, which represents transport companies, industrial parks, manufacturers, local government and customs brokers who are involved in trade across the land borders, called the tariffs "a significant step backwards. The cost of these new import taxes will cause lost jobs and higher prices, undermining the president’s goal of taming inflation."

The group's chairman and president noted that Trump led the transformation of NAFTA to USMCA, and the cooperation and open trade it represents is the right goal.

"We hope the administration will reconsider the effects of tariffs on consumers, job creators, and the country’s economic health."

The U.S. Chamber of Commerce shared a selection of quotes from news outlets, from small businesses around the country, about how damaging tariffs are to their operations.

Kandy Queen Dulceria owner Yesi Noyola said of her Texas shop, "I'm afraid we'll have to close our doors because people won't have the money to come and shop for things like piñatas and all the traditional Mexican candy that people love."

Better Design and Build Owner Bar Zakheim said that lumber "has already been getting more expensive over the past few years due to supply chain shocks and wildfires, and a huge proportion of our lumber comes from Canada. These tariffs are going to make everything we do considerably more expensive, at a time when the high-priced housing market and high interest rates are already cutting into our bottom line.” Zakheim's business is in San Diego.

The Chamber also quoted a fuel oil provider in Vermont who imports from Canada, and a craft brewer who said that domestic aluminum had gotten more expensive even before 25% tariffs take effect on imported aluminum.

USW Legislative Director Roy Houseman told International Trade Today at the Capitol on March 4: "The union has taken a very firm position that we see the tariffs on Canada as unnecessary. We do have longer-term strategic issues with Mexico, but that is something we believe should be addressed in USMCA renegotiations." The USW represents steel and aluminum workers in Canada; 80% of aluminum consumed in the U.S. is imported from Canada.

The AFL-CIO, which includes both the UAW and USW, said tariffs should be targeted, and the blanket tariffs on Canada and Mexico "run the risk of causing unnecessary economic pain for America’s workers without addressing workers’ core economic priorities. The tariffs on Canada are particularly damaging as they ignore our close economic and security relationship, while undermining industries that engage in cross-border trade that supports good union jobs on both sides of the border."

The American Farm Bureau pointed out that 85% of potash, used in fertilizer, is imported from Canada. "For the third straight year, farmers are losing money on almost every major crop planted," the bureau wrote. "Adding even more costs and reducing markets for American agricultural goods could create an economic burden some farmers may not be able to bear." It noted that U.S. producers exported $83 billion in agricultural products to China, Canada and Mexico last year, and asked the administration to resolve the dispute quickly.

Beijing said it will levy a 15% tariff on U.S. chicken, wheat, corn and cotton, as well as a 10% tariff on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products. China’s finance ministry said the measures, effective March 10, are a direct response to the Trump administration’s decision to use tariffs to address fentanyl trade (see 2502270037).