Manufacturers have mixed emotions on Trump's new tariffs

China immediately retaliated with tariffs on US products: 15% on coal and liquefied natural gas and 10% on crude oil, agricultural machinery, and large-engine cars. On Wednesday, it went further and took its complaint to the World Trade Organization, requesting dispute consultations with the US over the new levies.

Stakeholders across the steel and manufacturing supply chains spoke out after Trump’s Feb. 1 executive order announcing the Feb. 4 tariff start. Some companies and associations cheered the tariffs, while others couldn’t hide their frustration with them.

The situation remains fluid, but here’s a roundup of where some stand… for now.

North American steel associations

The American Iron and Steel Institute (AISI), the D.C.-based trade group representing some but not all American steelmakers, said it supports the tariffs on China.

“Tariffs are a legitimate tool for governments to use to boost manufacturing and address a range of difficult and important issues,” AISI President and CEO Kevin Dempsey told SMU. “My hope is that the governments of the three USMCA countries will continue to work together to address the challenges we all face.”

And China is one of those common challenges. AISI has long called attention to its unfair trade practices that harm US steel producers.

“We appreciate the administration’s commitment to addressing the challenges from China and support the president’s tariffs on China and his America First Trade Policy to address these issues, especially the growing problem of transnational subsidies,” Dempsey said.

The Canadian Steel Producers Association and Mexico’s steel chamber Canacero expressed deep frustration with Trump’s tariffs, lamenting the disruption they’d cause to the highly integrated North American supply chains.

Largest US steelmaker is vocal

Nucor, the largest American steelmaker, cheered the tariffs after the executive orders were signed.

“Nucor applauds the first steps taken by President Trump in his America First Trade Agenda. We look forward to working with President Trump to enforce our trade laws and strengthen American manufacturing!” said a Feb. 1 statement signed by Leon Topalian, Nucor’s chair, president, and CEO.

Manufacturers

Many organizations opposed to tariffs believe they will have far-reaching negative impacts on the highly integrated North American supply chains – the very ones that have allowed US manufacturers to be globally competitive, pointed out Jay Timmons, president and CEO of the National Association of Manufacturers (NAM).

Timmons said manufacturers would bear the brunt of the tariffs.

“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,” he added.

NAM said it stands ready to work with Trump on “a trade strategy that reinforces American strength — holding bad actors accountable while preserving the gains of the successful USMCA and advancing policies that sustain manufacturing growth here at home.”

Similarly to NAM, the United Steelworkers (USW) called for a reconsideration of tariffs on Canada to maintain the stability of industries and supply chains.

The Association of Equipment Manufacturers (AEM) said the tariffs jeopardize American competitiveness.

“Levying tariffs on goods that US equipment manufacturers depend on not only jeopardizes the President’s agenda, including the Trump administration’s plan for a stronger, more competitive America, but drives up costs for U.S. equipment manufacturers, disrupts our supply chains, and exposes our customers to retaliatory tariffs,” commented Kip Eideberg, AEM senior vice president.

Appliance

The Association of Home Appliance Manufacturers (AHAM) said in an email to SMU that it fully supports “a strong, integrated North American market, including a revised USMCA.”

With millions of people relying upon its members’ appliances every day, AHAM said it is monitoring the details of all proposals. “Just as people in every home depend on their appliances, manufacturers are relying on lawmakers to develop common-sense policies that enable innovation,” it added.

Automotive

Aggressive tariff action is a good first step in protecting American manufacturing jobs, according to the United Auto Workers (UAW). However, “we do not support using factory workers as pawns in a fight over immigration or drug policy.”

“If Trump is serious about bringing back good blue-collar jobs destroyed by NAFTA, the USMCA, and the WTO, he should go a step further and immediately seek to renegotiate our broken trade deals,” the union commented.

“Any tariff action must be followed with a renegotiation of the USMCA, and a full review of the corporate trade regime that has devastated the American and global working class,” UAW stated.

According to the Alliance for Automotive Innovation (AAI), the “seamless” North American automotive trade generates $300 billion in economic value.

“It not only keeps us globally competitive, it supports auto industry jobs, vehicle choice and vehicle affordability in America,” added AIA President and CEO John Bozella in a Feb. 1 statement.

The Canadian Vehicle Manufacturers’ Association (CVMA) opposes the levies and said every effort should be made to avoid their implementation.

“Tariffs on vehicles and parts will reduce North American vehicle production, increase vehicle prices, and lead to job losses at manufacturing facilities across the continent,” said Brian Kingston, CVMA president and CEO.

Construction

The Associated General Contractors of America (AGC) is concerned about the tariff situation. With over 27,000 member firms, the association bills itself as the voice of the construction industry.

“Increasing the cost of a range of construction materials will prompt contractors to raise bid prices, potentially undermining future demand for projects,” commented AGC CEO Jeffrey Shoaf.

He said AGC is working to explain to the new administration the negative impacts inflation has had on the construction industry, particularly over the last few years.

“Hopefully, the administration will be able to rapidly resolve the underlying concerns driving the new tariffs so our members can help build an even stronger economy,” said Shoaf.

Raw materials

The US recycling industry is a net exporter that helps to reduce the US trade deficit, said the Recycled Materials Association (ReMA), pointing out that “US recyclers benefit greatly from the North American market access that the USMCA provides, access that these tariffs will put at risk.”

“Each year, more than $8 billion in recycled materials cross the U.S.-Canada border, while nearly $3.3 billion of recycled products cross the U.S.-Mexico border,” said ReMA President Robin K. Wiener.

“These new tariffs, and any retaliatory measures they may provoke, will only reduce the competitiveness of our industry and the manufacturers that rely on recycled materials,” Wiener warned.