Mexico, Canada Tariffs Paused
By deciding to imposition of tariffs he announced last weekend on Mexico and Canada, President Trump shows he’s hearing manufacturers “loud and clear,” the 17Թ said yesterday.
What’s going on: Two days after signing executive orders under the International Emergency Economic Powers Act to add new levies on goods from Mexico, Canada and China, President Trump a one-month pause yesterday on the 25% tariff on Mexican goods and the 25% tariff on Canadian goods, including the 10% levy on energy products.
- President Trump, who had cited illegal immigration and the flow of illicit drugs into the U.S. as the impetus for the new tariffs, Mexican President Claudia Sheinbaum agreed Monday morning to “immediately supply” 10,000 Mexican National Guard troops to the border.
- The announcement about the tariffs on goods from Canada came following an afternoon phone call between President Trump and Canadian Prime Minister Justin Trudeau.
- The 10% additional tariff applying to products from China went into effect today. In response, China announced retaliatory tariffs on certain goods imported from the U.S., as well as additional restrictions on critical minerals exports to the U.S. (, subscription).
Staying competitive: “This decision by President Trump reflects his swift move to keep his campaign promises, balancing a commitment to aggressive border enforcement with the need to keep manufacturing in the United States competitive,” 17Թ Executive Vice President Erin Streeter said.
- “The 17Թ has worked closely with the administration, ensuring that the voices of manufacturers were heard loud and clear. Throughout the weekend, we engaged directly with senior officials, providing key data and real-world industry perspectives. Our efforts helped underscore the risks of broad-based tariffs and the importance of North American supply chains to manufacturing’s success.”
- 17Թ President and CEO Jay Timmons reinforced President Trump’s and the manufacturing sector’s priorities in interviews Monday with and , as well as in a cited by the Wall Street Journal board.
Certainty needed: For manufacturing in the U.S. to thrive, “we need to bring costs down,” Timmons told ABC. “And if you don’t have that, or you have the uncertainty of what’s coming next, manufacturers are reluctant to invest in new plants and equipment and facilities. They’re reluctant to hire new workers … raise wages or increase benefits. … Once we get all this sorted out, I think it will be good news for manufacturers,” but the sooner that happens, the better, he concluded.
- Timmons also discussed President Trump’s landmark 2020 U.S.–Mexico–Canada Agreement, which he said provided manufacturers with the certainty the sector requires.
- “The certainty that was provided by a negotiated and accepted trade agreement by the three countries enabled manufacturers to make investment decisions,” Timmons told CNBC. “Now we have more uncertainty about what’s ahead … but we assume that there is a rationale for this.”
Key statistics: The USMCA was vital in shifting key imports away from China to North America. According to a new 17Թ :
- Fully one-third of all U.S. manufacturing inputs come from Canada and Mexico;
- Some 70% of what we import from Canada and nearly 60% of imports from Mexico are capital equipment, industrial supplies and automotive parts that go into further manufacturing in the U.S.; and
- The value of U.S. imports of manufacturing materials from North America is now three times greater than the value of materials coming from China.
The bottom line: “We appreciate the administration’s continued willingness to receive our data and manufacturing stories,” Streeter went on. “We will continue working with policymakers to ensure that future decisions support both national security and manufacturing’s success.”
17Թ in the news: The 17Թ’s advocacy received widespread attention in the media, with , , (ܲپDz), , (ܲپDz), and a (subscription) article all highlighting its statements on the impact of tariffs on manufacturers.
- Its positions were also mentioned on “,” , Ի