President Donald Trump announced on 3 march he will proceed with the 25% tariffs on all imports from Canada and Mexico as well as place an extra 10% on the existing 10% tariffs on China goods, which takes China tariffs to 20%.
The two countries were given 30 days to address Trump’s concerns on illegal immigration and drug threats, but the White House said both countries “failed to adequately address the situation”.
Mexico and Canada have announced retaliatory measures and China has said it will impose fresh tariffs on a range of agricultural imports from the US, according to multiple news reports.
American Apparel & Footwear Association (AAFA) president Steve Lamar stated the escalating tariffs threaten the stability of the consumer-driven economy and the 3.5m jobs supported by the apparel industry.
He is calling for discussions with government officials to establish smart trade policies that benefit both US exports and imports while urging Congress to play its role in managing tariffs and renewing beneficial trade agreements.
The AAFA hopes to engage with US administration officials, including US Trade Representative Ambassador Greer and Commerce Secretary Howard Lutnick on trade policy guardrails that will promote intelligent trade strategies.
“These new tariffs are compounding rapidly. Amid other hints at hitting hard on the EU and other allies as well, each HTS code of tariffs snowballs into a growing – and potentially crushing – burden on American businesses and hardworking American families,” Lamar noted.
The organisation stressed the importance of government actions that support both the export of US goods and the importation of safe, affordable consumer products.
Lamar added: “Both sides of this trade equation support hundreds of millions of American consumers and workers, and the communities in which they live. We also look to the 119th Congress to assert its constitutionally mandated roles on tariffs to ensure these trade policies can achieve their objectives in a clear manner and to reactivate and renew beneficial trade agreements and trade preference programmes that leverage US economic objectives while promoting predictable market access.”
National Retail Federation government relations executive vice-president David French described the tariffs on North American partners as ultimately harmful to Americans and businesses supplying daily consumer needs.
French seeks alternative measures for border security instead of tariffs that inflate prices for consumers on household items.
He said: “Tariffs are just one tool at the administration’s disposal to achieve a secure border, and we urge it to explore other options to accomplish the same goals. As long as these tariffs are in place, Americans will be forced to pay higher prices on household goods. We urge the Trump administration and our Canadian and Mexican counterparts to work together to quickly resolve our outstanding border security issues.”
National Foreign Trade Council (NFTC) Global Trade Policy vice president Tiffany Smith added: “Imposing tariffs on Canada and Mexico threatens to chill a collaborative effort to strengthen our shared border and risks starting a trade war with America’s closest trading partners.
She explained: “While we agree with concerns about illicit activity by China, escalating tariffs will continue to degrade global supply chains and increase costs for American businesses and consumers. Layering this new round of tariffs on Chinese imports creates additional headwinds and mounting costs for businesses that have little time to react or to make informed decisions on alternative sources of supply.”
Smith wants the administration to collaborate with leading trading partners to “quickly find a path forward to rescind these tariffs and avoid a trade war that will be costly for businesses and consumers”.
