Reaction to Trump’s imposition of tariffs on Mexico, Canada, China
(Reuters) -U.S. President Donald Trump on Saturday ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China starting on Tuesday and declared that they would remain in place until a national emergency over the drug fentanyl and illegal immigration to the U.S. ends.
Following is a compilation of reaction to the development:
MATT BLUNT, PRESIDENT OF AMERICAN AUTOMOTIVE POLICY COUNCIL, WHICH REPRESENTS FORD MOTOR, GENERAL MOTORS AND STELLANTIS:
“We continue to believe that vehicles and parts that meet the USMCA’s stringent domestic and regional content requirements 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.”
JOSH LIPSKY, SENIOR DIRECTOR OF THE ATLANTIC COUNCIL’S GEOECONOMICS CENTER:
“Mexico and Canada have a retaliation planned that’s unlike anything Trump saw the first time around,” he told Reuters. “I’m not sure the administration is fully prepared for the backlash.
“China is breathing easy. They went from a 60% threat to a 10% they can manage through currency.”
MEXICO’S RULING PARTY CONGRESSIONAL LEADER RICARDO MONREAL TO BROADCASTER MILENIO:
“It is one of the heaviest attacks Mexico has received in its independent history. It is not admissible, it cannot be accepted, a unilateral decision of such magnitude…. We are all going to lose, they will too.”
ROBERT MCNALLY, PRESIDENT OF CONSULTANCY RAPIDAN ENERGY GROUP:
“The President’s decision reflects both his determination to follow through on his threat to impose tariffs on Canada and Mexico and at the same time, a sensitivity to the risk of higher pump prices, especially in the Midwest.
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“There is still the possibility that tariffs will not go into effect and negotiations on border security will succeed. If tariffs go into effect, Rapidan expects the costs, including possible retaliatory Canadian ones on oil exports, to be borne by Canadian crude producers, US refiners that depend on Canadian crude, and motorists who will pay more at the pump.”
LANA PAYNE, HEAD OF UNIFOR, WHICH REPRESENTS CANADIAN AUTOWORKERS:
“An attack of this magnitude, Canadians will demand that their government respond. I hope Americans understand right now that in Canada there’s a lot of anger. We are supposed to be the United States’ closest ally, and folks are trying to wrap their heads around why this is happening.”
DAVID EBY, PREMIER OF BRITISH COLUMBIA:
“President Trump’s 25% tariffs are a complete betrayal of the historic bond between our countries and a declaration of economic war against a trusted ally. As British Columbians, and as Canadians, we will stand strong and united in the face of this unprecedented attack.”
ONTARIO PREMIER DOUG FORD:
“Canada now has no choice but to hit back and hit back hard.”
“As Premier of Ontario, the federal government has my full support for a strong and forceful response that matches U.S. tariffs dollar for dollar. Canada has so much of what America needs: high-grade nickel and other critical minerals, energy and electricity, uranium, potash, aluminum. We need to maximize our points of leverage and use them to maximum effect. The federal government needs to also pursue every legal route to challenge these unfair, unjustified and illegal tariffs.”
CANADIAN CHAMBER OF COMMERCE:
“President Trump’s profoundly disturbing decision to impose tariffs will have immediate and direct consequences on Canadian and American livelihoods. Tariffs will drastically increase the cost of everything for everyone.”
JOHN BOZZELLA, PRESIDENT OF THE ALLIANCE FOR AUTOMOTIVE INNOVATION:
“Seamless automotive trade in North America accounts for $300 billion in economic value. It not only keeps us globally competitive, it supports auto industry jobs, vehicle choice and vehicle affordability in America. We look forward to working with the administration on solutions that achieve the president’s goals and preserve a healthy, competitive auto industry in America.”
DAVID MCCALL, PRESIDENT OF THE UNITED STEEL WORKERS UNION:
“These tariffs don’t just hurt Canada. They threaten the stability of industries on both sides of the border.”
MATTEO CEURVELS, PRINCIPAL LATIN AMERICA ANALYST FOR EMARKETER:
The 25% tariff on Mexico threatened to upend three decades of trade integration, dampening retail growth and adding pressure on businesses. Mexico’s retail sales were expected to take a huge hit, growing just 3.3% this year instead of the 4.5% growth projected.
“For Claudia Sheinbaum, managing this economic rift will be one of the biggest tests of her presidency, as she balances the interests of Mexico’s key industries and consumers.”
UNIFOR, THE LARGEST PRIVATE SECTOR UNION IN CANADA REPRESENTING DETROIT THREE AUTOWORKERS:
“Canada must hit back hard and fast as Trump declares economic war on Canadian workers.”
CHET THOMPSON, CEO OF THE AMERICAN FUEL & PETROCHEMICAL MANUFACTURERS:
“American refiners depend on crude oil from Canada and Mexico to produce the affordable, reliable fuels consumers count on every day. Some regions in our country also rely on Canadian refined products, like gasoline, diesel and heating oil. We are hopeful a resolution can be quickly reached with our North American neighbors so that crude oil, refined products and petrochemicals are removed from the tariff schedule before consumers feel the impact.”
TOM MADRECKI, VICE PRESIDENT OF SUPPLY CHAIN RESILIENCY AT THE CONSUMER BRANDS ASSOCIATION:
“As the country’s largest domestic manufacturing sector by employment, supporting more than 22 million American jobs and contributing $2.5 trillion to the U.S. GDP, the consumer packaged goods industry supports a strategic ‘America First Trade Policy’ that protects American jobs and keeps food, beverage, household and personal care products affordable. Tariffs on all imported goods from Mexico and Canada – especially on ingredients and inputs that aren’t available in the U.S. – could lead to higher consumer prices and retaliation against U.S. exporters. Despite sourcing the vast majority of ingredients and inputs from U.S. farms, CPG companies depend on global supply chains for certain imports due to unique growing conditions and other limiting factors around the world. We urge leaders in Mexico and Canada to work with President Trump to protect consumers’ access to affordable products and remove tariffs that could contribute to grocery inflation.”
NOVA SCOTIA PREMIER TIM HOUSTON:
“First, Nova Scotia will limit access to provincial procurement for American businesses. We will look for opportunities to cancel existing contracts and will maintain the option to reject bids outright because of President Trump’s unlawful tariffs.
Second, the cost of tolls at the Cobequid Pass will double for commercial vehicles from the United States, effective February 3, 2025.
Finally, we will direct the Nova Scotia Liquor Corporation to remove all alcohol from the United States from their shelves effective February 4, 2025.”
GERMAN AUTOS ASSOCIATION VDA
“Increasing geopolitical tensions and rampant protectionism are continuing to lead to companies having to serve the markets more and more locally … The exact effects will depend heavily on the respective situation. But the fact is: sooner or later, isolationism will only have losers in all countries! “
REP. SUZAN DELBENE OF WASHINGTON STATE, AND REP DON BEYER OF VIRGINIA, BOTH DEMOCRATS:
“President Trump just started a trade war that will raise prices on American families and invite retaliation against American businesses, workers, and farmers. This is a tax on everyday goods that will hit the pocketbooks of middle-class families at the grocery store, the gas station, and the pharmacy counter.”
“This is a blatant abuse of executive power. No president should unilaterally be able to put in place these broad-based tariffs that will have far-reaching economic impacts in communities across the country.”
CLAYTON SEIGLE, SENIOR FELLOW FOR ENERGY SECURITY AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN WASHINGTON:
“Tariffs on Canadian and Mexican oil are at odds with President Trump’s stated desire for lower energy prices. They will increase costs for the U.S. refining industry, and American consumers and business will face higher prices for gasoline and diesel.
The tariffs will also undermine U.S. energy security; the 4 million barrel per day flow of crude oil from Canada is the most dependable of any trade in the global energy supply chain. The tariffs will cause Canadian producers of heavy oil to reduce output, raising the cost of substitute barrels that will come from more distant and, in some cases, less reliable suppliers.
Retaliatory measures by Canada will further disrupt U.S. flows and company earnings, especially if reciprocal tariffs are imposed on Canadian imports of refined products made in the United States.”
AMERICAN PETROLEUM INSTITUTE:
“Energy markets are highly integrated, and free and fair trade across our borders is critical for delivering affordable, reliable energy to U.S. consumers. We will continue to work with the Trump administration on full exclusions that protect energy affordability for consumers, expand the nation’s energy advantage and support American jobs.”
(Reporting by U.S. economics team)
