Update: According to CNBC, President Trump has agreed to pause tariffs on imports from Canada for at least 30 days. Hours prior, Trump stated that tariffs on imports from Mexico would be paused for one month. The pauses on tariffs comes after all countries involved came to an agreement on preventing the trafficking of the opioid fentanyl into the U.S.

Duties on Canada, Mexico & China weigh on business

[Atlanta] President Donald Trump issued an executive order that will impose double-digit tariffs on Canada, Mexico and China, to take effect on Feb. 4.

At press time, the tariffs against Mexico were delayed for one month according to numerous reports. According to statements, the U.S. and Mexico will use the pause to continue negotiations.

The proposed tariffs will be an additional 25 percent of duty on imports from Canada and Mexico and 10 percent on imports from China. The tariffs will apply to all imports except Canadian energy resources exports, which will face a 10 percent tariff instead.

According to international law firm White & Case, “businesses should anticipate continued escalation in the coming days and weeks as Canada, Mexico, and China are all likely to retaliate against the United States. Trump’s executive orders indicate that the United States may raise its tariffs further if the targeted countries retaliate.”

Trump is using the International Emergency Economic Powers Act (IEEPA) as the basis for the tariff orders. Corporate leaders and industry associations have spoken out against the tariffs and the likely price increases they will lead to for U.S. consumers.

In a statement, Carl Harris, chairman of the National Association of Home Builders (NAHB) and a custom home builder from Wichita, Kan., said the tariffs will harm housing affordability. “On President Trump’s first day in office, he issued an executive order directing departments and agencies to deliver emergency price relief by pursuing actions to lower the cost of housing and increase housing supply. This move to raise tariffs by 25 percent on Canadian and Mexican goods will have the opposite effect. More than 70 percent of the imports of two essential materials that home builders rely on — softwood lumber and gypsum (used for drywall) — come from Canada and Mexico, respectively.”

Harris said the tariffs and price increases will affect construction. “Tariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying for the tariffs in the form of higher home prices. NAHB urges the administration to reconsider this action on tariffs and we will continue to work with policymakers to eliminate barriers that make housing more costly and prevent builders from boosting housing production.”

The National Retail Federation (NRF) said fair trade is important, steep tariffs are not the answer. “We support the Trump administration’s goal of strengthening trade relationships and creating fair and favorable terms for America,” said David French, executive vice president of government relations in a statement.

“But imposing steep tariffs on three of our closest trading partners is a serious step. We strongly encourage all parties to continue negotiating to find solutions that will strengthen trade relationships and avoid shifting the costs of shared policy failures onto the backs of American families, workers and small businesses. The retail industry is committed to working with President Trump and his administration to achieve his campaign promises, including strengthening the U.S. economy, extending his successful Tax Cuts and Jobs Act, and ensuring that American families are protected from higher costs.”

And U.S. Chamber of Commerce senior vice president and head of international John Murphy said tariffs are not the answer. “The President is right to focus on major problems like our broken border and the scourge of fentanyl, but the imposition of tariffs under IEEPA is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains. The Chamber will consult with our members, including main street businesses across the country impacted by this move, to determine next steps to prevent economic harm to Americans. We will continue to work with Congress and the administration on solutions to address the fentanyl and border crisis.”