Plastics and chemical industry groups in both the U.S. and Canada are renewing their calls for President Donald Trump to reconsider the 25 percent tariffs on Canada and Mexico that his administration put in place March 4.
Both the Plastics Industry Association in Washington and the Chemistry Industry Association of Canada said they were "deeply concerned" about the tariffs, which Trump first proposed — and then delayed — a month ago, before enacting them March 4.
The U.S. association said in March 4 statement it was also concerned about new tariffs on imports from China.
"These tariffs will disrupt the movement of essential machines, products and materials that keep American manufacturers running across sectors like health care, consumer products and automotive," said Matt Seaholm, president and CEO of the association. "[The association] remains deeply concerned about the tariffs on Canada, Mexico and China, and their impact on U.S. plastics manufacturing and jobs."
"While we understand President Trump's rationale, a competitive industry depends on policies that protect American manufacturing while ensuring stable supply chains," Seaholm said, adding that the association recognized the need for secure border and for stopping illegal drug trafficking.
He called for a "strategic, measured approach" to trade.
Trump announced March 3 that the tariffs would go into effect the next day, ending speculation that he would delay them or reduce the amount below 25 percent. U.S. Commerce Secretary Howard Lutnick had suggested March 2 that the final tariffs on Canada and Mexico could be set below 25 percent, but Trump maintained his previous plans for 25 percent.
Similar to the plastics association in the U.S., the Canadian association expressed deep worry over the impact of the tariffs in a March 4 statement.
It also urged Canada's government to immediately move to broaden the country's trade relationships around the world.
"The Chemistry Industry Association of Canada is deeply concerned about the implementation of tariffs on Canadian imports by the United States which cause economic and social challenges on both sides of the border," CIAC said.
CIAC President and CEO Greg Moffatt said tariffs will raise costs and called on the Canadian government to pursue policies that recognize the "changing economic landscape," including by diversifying its trade relationships with other countries.
"While a tariff and policy response from Canada is warranted, we must not lose sight of the pressing need to future-proof our economy," Moffatt said. "Increasing our economic competitiveness should be the guiding principle for all policy actions in the weeks and months ahead. We need all stakeholders in Canada to recognize and address the gravity of the changing economic landscape."
CIAC said that "expanding into new markets beyond North America — both east and west — is vital for economic growth and long-term prosperity."
As well, the U.S. Chamber of Commerce called for a "swift end" to the tariffs, saying they would raise prices.
"The chamber supports the administration's efforts to advance pro-growth policies like fewer regulations and less taxation that will grow our economy and expand opportunity; and to fix serious problems like our broken border and stopping the flow of fentanyl in this country," said Neil Bradley, chief policy officer. "We also want to work together to keep costs down, but tariffs will only raise prices and increase the economic pain being felt by everyday Americans across the country."