This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
4/3/2025
Editor's note: This story has been updated with a comment from the Association of American Railroads.
By Bridget Dean, Associate Editor
President Donald Trump yesterday announced global reciprocal tariffs on U.S. trading partners to take effect on April 9, as well as baseline global 10% tariffs on imports, with select exceptions, beginning April 5.
Canada and Mexico will remain subject to the tariffs Trump ordered on March 4, according to a fact sheet released by the White House.
A “large and persistent” goods trade deficit has shrunk manufacturing and led to a lack of incentive to increase domestic manufacturing, undermined supply chains and forced the defense-industrial industry to be dependent on other countries, Trump said in his executive order. He cited an unnamed analysis that reported a global tariff of 10% would grow the economy by $728 billion.
“[The] announcement was complicated, and manufacturers are scrambling to determine the exact implications for their operations,” said National Association of Manufactures President and CEO Jay Timmons in a statement yesterday. “The stakes for manufacturers could not be higher. Many manufacturers in the United States already operate with thin margins.”
To reduce disruptions and cost increases, the association urged minimizing tariff costs for manufacturers investing in the United States, ensuring tariff-free access to commodities that manufactures use to make things in the United States, and negotiating zero-for-zero tariffs for American-made products in trading partners’ markets.
“While we welcome President Trump’s focus on reducing foreign trade barriers, we need to reduce America’s high trade barriers as well and do so in a predictable manner that enables long-term investment and supply chain decisions,” said Steve Lamar, president and CEO of the American Apparel & Footwear Association in a press release. “For companies that had been in a ‘wait and see’ mode, the chaos of the last few months, coupled with the confusion from [yesterday’s] announcement has only created more uncertainty.”
Tariffs will cause more anxiety and uncertainty for American businesses and consumers, National Retail Federation (NRF) officials said in a press release.
“Voters do not see tariffs as helping vulnerable communities including blue collar workers, rural communities, families with young children, low-income households, the elderly and farmers,” said NRF Executive Vice President of Government Relations David French.
National Farmers Union President Rob Larew said American family farmers and ranchers will “bear the brunt” of the global trade war.
“Policymakers must recognize that the consequences of these decisions extend far beyond the farm — our entire food system and the communities it sustains are at stake,” he said.
The union and 17 other agricultural organizations sent a letter to the Trump administration on April 1 to urge a different approach to trade deficits and express their willingness to work with the administration.
Asked for a response to the new tariffs, an Association of American Railroads spokesperson gave the following statement: “Railroads play a critical role in connecting American industries, small businesses and farmers to global markets and helping drive economic activity across the nation. AAR analysis indicates that 38% of all rail traffic – or 11.3 million shipments in 2023 – were directly linked to trade-related activity. Railroads are focused on providing customers with the reliable, cost-effective and efficient service that helps them compete and drive economic growth into the future.”