Local manufacturing companies are not happy with the prospect of a 25% tariff being put on their goods heading to the United State’s closest neighbors.
In a joint statement, the Buffalo Niagara Manufacturing Alliance and the Manufacturers Association of the Southern Tier voiced their concerns on the economic impact proposed tariffs would have on the Western New York region.
“Manufacturers operate in a capital-intensive environment that requires long-term planning and stability,” their statement reads. “The ongoing uncertainty created by tariffs is making it harder for companies to make confident decisions about expansion, hiring, and investment in New York state. Manufacturers — small and large — are looking for pro-growth policies that foster stability and encourage investment. Tariffs that drive up costs without a clear long-term strategy undermine the strength of the manufacturing sector.”
This comes as President Trump enacted tariffs this past Monday on goods from Canada, Mexico, and China, with Canada and China imposing their own tariffs on American goods. A one-month pause for American automaker imports from Canada and Mexico was granted on Wednesday.
According to the U.S. Chamber of Commerce, Canada is one of New York’s largest trading partners, with the trade between the two reaching $42.6 billion in value in 2022.
The state’s businesses exported nearly $106.3 billion worth of goods overseas, supporting 2.8 million jobs.
The U.S. Chamber has also voiced its opposition, with chief policy officer Neil Bradly stating while they support the administration’s pro-growth policies, they want to keep costs down for consumers.
“We urge reconsideration of this policy and swift end to these tariffs,” Bradly’s statement reads.
According to the National Association of Manufacturers, one-third of U.S. imported manufacturing inputs come from Canada and Mexico, with the value of those inputs now three times that of China. The proposed 25% tariff on Canada and Mexico would add an estimated $144 billion a year to the cost of manufacturing.
“Uncertainty is the enemy of investment,” said NAM President and CEO Jay Timmons. “Manufacturing is a capital-intensive industry. We make decisions months and years in advance. That’s why we need certainty. We need a clear, actionable, multistep strategy from our government — one that says, ‘We want you to invest here, hire here and succeed here.’”
The BNMA and MAST represent more than 1,600 companies and 70,000 employees involved with manufacturing across five counties in Western New York. Their collective work produces $26.8 billion worth in annual shipments.