The leaders of the Canadian and Mexican consulates in Atlanta said Monday that tariffs threatened and enacted by the Trump administration have triggered uncertainty and risk significant harm to the economies of their nations and the U.S.
But the diplomats told members of the Rotary Club of Atlanta their nations remain committed to working with Washington to find a constructive path forward.
The economies of the U.S., Canada and Mexico are deeply entwined after decades of trade pacts, with millions of jobs tied to the movement of goods and services across North America’s borders, the diplomats told members of the Rotary Club.
President Donald Trump’s trade policies, with whipsawing announcements on tariffs and unclear demands of America’s northern and southern neighbors, have contributed to a sharp rise in economic uncertainty among consumers and trade-dependent businesses.
“For all three countries there will be harm at many different levels in many different sectors,” Consul General of Canada to the Southeast Rosaline Kwan said in an interview with The Atlanta Journal-Constitution. That disruption is particularly onerous on small businesses, she said.
Credit: AP
Credit: AP
A tariff is a tax on goods crossing a border. It is paid by whatever company or person is bringing in the goods. Since it adds to the importers’ price, they typically tack it onto the price tag for the company or consumer.
Consumers will ultimately pay more, but workers also could suffer from disruption if sales decline and businesses cut back.
“For us, for Canada, from our perspective, tariffs harm American consumers, American workers and American businesses and industry,” Kwan said in the interview.
Kwan and Consul General of Mexico in Atlanta Javier Díaz de León told the crowd of top Atlanta business and civic leaders their nations remain committed to the United States-Mexico-Canada Agreement, the trade pact negotiated during Trump’s first term and the successor to the North American Free Trade Agreement.
Canada and Mexico are the top two export markets for Georgia-made products, according to data from the state Department of Economic Development, and the countries are also key sources of foreign-made goods that many Georgians buy.
Credit: AP
Credit: AP
Since entering office, Trump has signed executive orders slapping tariffs of 25% on most goods from Canada and Mexico. He has said Canada and Mexico have not done enough to secure the borders of their two nations and fight drug trafficking.
The consuls general Monday outlined steps both nations have taken to secure the borders and crack down on the trafficking of fentanyl, a key Trump demand.
Trump delayed the levies against Canada and Mexico once, then paused them again for any goods that comply with the USMCA. But without a resolution, the 25% tariffs on most goods could resume as soon as April 2.
Trump also raised import taxes on foreign-made steel and aluminum and hiked tariffs on Chinese goods.
Canada and the EU have retaliated in response to the U.S. tariffs on foreign metals. Thus far, Mexico has not but has signaled it will.
The U.S. is the top import market in the world, with Mexico being the top source of imports purchased in Georgia, totaling $18.6 billion, according to the state Department of Economic Development. Canada is a top 10 market with more than $6 billion in Canadian goods purchased by Georgia businesses and consumers.
Across the U.S., autos (nearly $93 billion) and auto parts (nearly $78 billion) are the top two imported products from Mexico, data from the Census Bureau show.
Díaz de León highlighted for the Rotarians the close connections of the auto industry to the U.S. market. Mexico has emerged as the No. 4 automaking nation in the world, with factories from brands based in the U.S. Components often hop across North American borders multiple times during assembly.
“These cars happen to be North American,” he said.
Oil (about $108 billion), autos (about $43 billion) and auto parts (about $14 billion) are top products from Canada sold in the U.S.
The trade war also threatens to disrupt Georgia businesses that export products abroad.
Canada purchased $7.4 billion worth of Georgia-made products in 2024, and Mexico purchased $6.3 billion, state data show.
Trump sees tariffs as the means to force renegotiations of trade deals and to push companies to make more goods in the U.S., which he says will create jobs.
In the long term, that is possible, but in the near term, tariffs are inflationary and will likely soon begin to bite consumers in the wallet. They also can lead to near-term job losses.
Credit: AP
Credit: AP
Tariffs on imports raise costs on domestic manufacturers that rely on foreign-sourced materials that go into their finished goods. And retaliatory tariffs on American products make those goods more expensive to sell, making them less competitive in foreign markets.
The trade war has unnerved Wall Street and eroded measures of consumer and business confidence.
Trade pacts between the three nations set predictable rules and have allowed business to flourish between them, Díaz de León said.
“Corporations need certainty. With no certainty they can’t operate,” he said.
About the Author
Keep Reading
The Latest
Featured
