State Treasurers Urge Immediate End to Trade War with Canada and Mexico

Democratic state treasurers from five states have called for an end to President Trump’s escalating trade war with Canada and Mexico. They warn that tariffs will burden consumers and threaten local economies. Concerns include rising prices on essential goods and job losses in key industries, as uncertainty in trade policies continues to grow.

Democratic state treasurers from Illinois, Nevada, Colorado, Oregon, and Minnesota have urgently requested an end to the escalating trade war initiated by President Donald Trump. During a Zoom call, they expressed concerns about the adverse impact of tariffs on everyday consumers, highlighting that these measures can create significant financial strain on families and businesses.

Minnesota’s State Auditor, Julie Blaha, characterized the trade wars with a metaphor: “The Trump trade wars are like a kid who stole a pickup and is doing donuts on your lawn. Even if he eventually gets that thing turned in the right direction, he still has wrecked your yard by the time he gets out.” This statement reflects the treasurers’ perception of the chaos caused by current trade policies.

The treasurers’ caution was voiced shortly after President Trump announced a temporary exemption for most goods from the 25% tariff on Mexican imports, effective until April 2. This exemption applies to products adhering to the U.S.-Mexico-Canada Agreement (USMCA), enabling tariff-free movement of goods manufactured or substantially altered within North America.

Illinois State Treasurer Michael Frerichs assessed the trade war as unnecessary, referring to it as a “Trump tax” that ultimately burdens American consumers. He emphasized that prices for essential goods, including vegetables, cell phones, and gasoline, are likely to rise, disproportionately affecting those already facing financial difficulties.

Colorado State Treasurer David Young highlighted the detrimental effects on Colorado’s economy, noting that Mexico and Canada are top trade partners, generating nearly $10 billion. He warned that prolonged tariff disputes jeopardize cornerstone industries such as agriculture and aerospace, potentially leading to business closures without access to these markets.

Oregon State Treasurer Elizabeth Steiner discussed the significant export values linked to Canada, Mexico, and China, which exceed $15 billion annually for her state. She cautioned that tariffs might escalate housing costs and threaten construction jobs, thereby affecting the affordability of homes. Steiner further lamented the unpredictability of trade policy: “How are families and businesses supposed to plan if draconian tariffs keep getting announced, then delayed, then reimposed, then delayed?”

The urgent call by Democratic state treasurers against the ongoing trade war emphasizes the potential economic repercussions on consumers and industries across states. The treasurers argue that tariffs will lead to increased prices on essential goods, strain financial resources for families, and threaten significant sectors of the economy such as agriculture and manufacturing. Continued uncertainties in trade policies pose challenges for businesses and citizens alike, highlighting the need for a more stable and predictable trade environment.

Original Source: www.usnews.com