WAUKESHA — After President-elect Donald Trump in November asserted he will impose tariffs on Mexico, Canada and China upon taking office, business and government leaders, as well as consumers, have all been dealing with a feeling of uncertainty on what the future holds.
The Metropolitan Milwaukee Association of Commerce and its members are also in a wait-and-see mode, said President Dale Kooyenga. There is concern, he said, that the tariffs could result in rising costs for manufacturers. However, many manufacturers feel like they have been taken advantage of thanks to manipulation of state enterprises in China and would welcome changes.
Tariffs remain a complicated concept, Kooyenga said, as is the overall process of manufacturing.
“Tariffs are taxes and generally taxes do have an effect on the economy,” Kooyenga said. There is the possibility that tariffs could cause prices to rise. He hopes that Trump intends to use the threat of tariffs to negotiation with other countries.
Whether or not Trump and his administration decide to impose tariffs, and their effects, will likely be played out over the coming months, Kooyenga said.
“There are a lot of moving pieces. It seems like no nation is absolutely safe from tariffs,” he said. “I have heard of companies that are stockpiling inventory with anticipating that prices may go up.”
Even so, Kooyenga said Americans have had higher confidence in the economy compared to the last several years.
The MMAC will continue to be a source of information for its members and will continue to assess the situation in Washington.
Will Neitzel, vice president of public policy for the Waukesha County Business Alliance, shared a similar sentiment, saying the Alliance’s members are also largely taking a “wait-and-see approach.”
“The Waukesha County Business Alliance and our members value policies that are clear, consistent and predictable. For several years, businesses have navigated the uncertainty of tariffs and supply chain issues due to a global pandemic,” Neitzel said. “Clear communication is crucial for businesses and enables them to make informed decisions and keep their businesses competitive and moving forward. The Alliance will continue to advocate for clear, limited and predictable regulations that enable businesses to thrive and plan for the future.
A survey done by Navigator Research in early December shows that 73% of polled Americans are familiar with tariffs; however, 44% of them view tariffs unfavorably.
“Similarly, Trump’s tariff plan is viewed negatively, with a plurality of Americans opposing it by an 8-point margin (36% support vs. 44% oppose). Over 3 in 5 believe the introduction of new tariffs would make costs of things they buy go up (63% costs go up vs. 12% costs go down), and with the additional context that Trump has proposed new tariffs, an identical share still believe costs will increase (62% costs go up vs. 12% costs go down),” according to the survey.
Whether tariffs were presented in terms of President Trump or not, Americans overall viewed them unfavorably, according to the Navigator Research survey. More than 3 in 5 Americans say the introduction of new tariffs would make the cost of things they buy increase.
Some respondents believe the new tariffs would create jobs in the U.S.: 33% say they would create jobs while 35% said they would cost jobs. Among Republicans, 56% said they thought the tariffs would create jobs, while 15% believe it would cost jobs. Among Democrats, 55% said they would cost jobs and 14% said they would create jobs.
The tariffs may only be a means of negotiating with other countries, said Stephen Moore, an economic adviser to Trump during his first term in the White House. Moore believes the threat of tariffs is a way for Trump to gain footing in the three-way trade agreement between the U.S., Canada and Mexico, according to a CBC News story.
“He uses the threat of tariffs to get countries to do things that he thinks are in America’s national security and economic interests,” said Moore, now a senior economist at the conservative Heritage Foundation.
It’s certainly gotten the attention of Canadian, Mexican and Chinese government leaders. On Dec. 27, the AP reported two Canadian Cabinet ministers left a meeting at Mar-a-Lago without assurances that Trump would reverse his stance on the threatened tariffs on all products from Canada.
Trump has threatened to impose 25% tariffs on all Canadian products if Canada does not stem what he calls a flow of migrants and fentanyl into the U.S. Nearly $3.6 billion Canadian dollars ($2.7 billion USD) worth of goods and services cross the border each day. Canada is the top export destination for 36 U.S. states.
This post was originally published on here
