Businesses, Farmers, Workers Face Tariff Pressure

Businesses have been struggling to navigate the challenges and the uncertainty around tariffs.
‌

What’s happening: President Donald Trump announced on Tuesday that tariffs on Canadian steel and aluminum would increase to 50%, while a 25% tariff would be applied to other trading partners starting on March 12.
‌

As we go to press, it appears the tariffs on Canadian metal will return to 25%. But these steel- and aluminum-specific tariffs are on top of any other existing duties, which means the actual tariff rate could be much higher depending on the country and product.

‌

Why it matters: Tariffs increase costs for families, disrupt supply chains for businesses, and can lead to retaliatory tariffs from other countries. This announcement is the latest development in a whirlwind of trade news.
‌

• Forty-one million American jobs rely on trade. To boost economic growth, America must participate in the global economy and increase trade opportunities.
   

What they’re saying: Traci Tapani, Vice-Chair of the U.S. Chamber’s Small Business Council and Co-President of Wyoming Machine in Minnesota, spoke to CNN recently about the impacts tariffs would have on small manufacturers and their workers:
‌

• ”A disturbance could mean lower wages for people or less of a wage increase. It could be changes in benefits. It could be reduced hours for people. This is a competitive market. Manufacturers in the U.S. are competing globally, and we're under a lot of price pressure." 
   

Tapani’s sentiments are reflected by business owners around the country. Companies and farmers face higher costs and worry about what it will mean for their sustainability.
‌

• “Everything in this catalog as of about two weeks ago has already gone up,” said Reshard Bakash, owner of Audiovision, a Little Rock, AR, car electronics dealer. “Even companies that assemble it here in the U.S., the parts are still coming from either Mexico, Canada, or China.”
   
• “[W]ith tariffs it will be more expensive. It will keep us from selling our commodities and that will drive prices down for us. It’s going to be tough for Montana producers this year,” said Tryg Koch, co-owner of Flathead Valley and Heritage Custom Farming.
   
• “This [tariffs on Canada and Mexico] is going to be a detriment to us and to the community,” said Dan Bean, co-owner of The Nick-Nackery, a costume store in Evansville, IA. “We are not trying to make record profits. We are not trying to hit yearly goals and quotas. We are trying to stay open and keep this business.”