Manufacturers Association CEO says tariffs will impact Hoosier companies
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While President Donald Trump said Monday that he is holding off on imposing tariffs against Mexico and Canada, the CEO of the Indiana Manufacturers Association says the tariffs, if implemented, would impact Indiana’s manufacturing sector.
“With so many variables and individual business decisions to be made, the only sure thing at the moment is uncertainty,” Andrew Berger said in a written statement Monday.
Trump on Saturday had directed that 25% tariffs on most imports from the two American partners—and 10% on Canadian energy products—go into effect at midnight Tuesday. The two nations threatened retaliation of their own, raising the prospects of a broader regional trade war.
However, news came throughout the day Monday that tariffs on both countries would be halted for at least 30 days as negotiations continue.
In his statement, Berger said Indiana is a global center for auto manufacturing with a large percentage of U.S., Canada and Mexico trade centered on the auto industry.
“Not only could tariffs impact consumers as the cost filters through the supply [chain],” he said. “Production facilities that use imported components or raw materials will now be a more costly operation, which will hurt manufacturing competitiveness here.”
Several major automakers have operations in Indiana, including Subaru in Lafayette, Stellantis in Kokomo, General Motors in Fort Wayne, Toyota in Princeton, and Honda in Greensburg.
However, Berger said there could be opportunity to ramp up domestic production, particularly among U.S. suppliers.
“Many IMA members are undoubtedly looking to grow, and now Canadian, Mexican and Chinese competitors could have less of a cost advantage,” he said. “Others will look to see if Canada and Mexico stop allowing unfair trade practices that are targeted at the U.S. economy. There is real motivation in the industry to use the opportunities afforded by a better tax and regulatory climate brought by a Trump administration to expand.”
Berger noted that growing will be difficult as Indiana’s manufacturing workforce has seemingly stagnated. He said 7,000 fewer production workers are employed today than a year ago, but there consistently between 20,000 and 30,000 manufacturing job openings.
“However the next few weeks or months develop, Indiana’s manufacturing industry and consequently the state’s economy will be impacted.”
The Associated Press contributed to this report.