Prior to President Donald Trump pausing 25 percent tariffs on Canada and Mexico, both the National Association of Manufacturers and the American Forest & Paper Association (AF&PA) had released cautionary statements:
Said AF&PA President and CEO Heidi Brock: “The American Forest & Paper Association supports free and fair-trade practices, and we rely on Canada and Mexico as key trading partners. In 2024 alone, total two-way trade for pulp and paper products with Canada was over $14 billion and total two-way trade with Mexico was over $5 billion. These tariffs have the potential to seriously disrupt the U.S. forest products industry’s complex, cross-border supply chains that employ more than 900,000 people.
“We strongly encourage the Canadian and Mexican governments to quickly come to the negotiating table to address concerns raised by the U.S. Government. It is imperative we return to normal free and fair trade soon to avoid longer term disruption to U.S. pulp, paper and packaging manufacturing operations.
“We look forward to working with the Administration to provide our industry’s perspective and important data to inform these consequential discussions.”
On Feb. 3, Trump announced that tariffs in Mexico would be delayed a month after Mexico President Claudia Sheinbaum had agreed to provide 10,000 soldiers at the border. Meanwhile, Prime Minister Justin Trudeau said that Canada would respond with a 25 percent tax on billions of US imports including pulp and paper, and corrugated and paperboard packaging.
China, meanwhile, promises to hit back with a 15 percent tax on some types of coal and liquefied natural gas and a 10 percent tariff on crude oil, agricultural machinery, and large-engine cars and pickup trucks.
National Association of Manufacturers President and CEO Jay Timmons released the following statement on Feb. 1:
“Manufacturers understand the need to deal with any sort of crisis that involves illicit drugs crossing our border, and we hope the three countries can come together quickly to confront this challenge.
“At the same time, protecting manufacturing gains that have come from our strong North American partnership is vital. The success of President Trump’s landmark trade agreement, the United States-Mexico-Canada Agreement, has strengthened North American supply chains and bolstered economic power across the region, boosting jobs, wages, and investments here in the United States.
“Thanks to this agreement, one-third of critical U.S. manufacturing inputs now come from Canada or Mexico, rather than from competitors like China that often engage in unfair trade practices. A 25 percent tariff on Canada and Mexico threatens to upend the very supply chains that have made U.S. manufacturing more competitive globally. The ripple effects will be severe, particularly for small and medium-sized manufacturers that lack the flexibility and capital to rapidly find alternative suppliers or absorb skyrocketing energy costs. These businesses—employing millions of American workers—will face significant disruptions. Ultimately, manufacturers will bear the brunt of these tariffs, undermining our ability to sell our products at a competitive price and putting American jobs at risk.”
https://boardconvertingnews.com/nam-afpa-caution-against-tariffs-on-mexico-canada/
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