Following the Trump Administration’s announcement on May 31 that tariff exemptions on steel and aluminum imports from Canada, Mexico and the European Union will be allowed to expire, meaning those 30 countries will face additional tariffs of 25 percent on steel imports and 10 percent on aluminum imports, both the Retail Industry Leaders Association (RILA) and the Outdoor Industry Association (OIA) released statements expressing concerns.
RILA vice president of international trade Hun Quach issued the following statement:
“Today’s White House announcement to unilaterally impose new tariffs on steel and aluminum imports from the European Union, Canada, and Mexico will have a negative impact on every sector of the American economy. The downstream impact of these tariffs will raise the cost of doing business for thousands of American companies, including retailers, and will stifle efforts to expand and create jobs. Imposing tariffs raises the stakes for our allies to take retaliatory measures that will hurt America’s exporters while creating more uncertainty for American businesses. The administration has created a three-front trade war, targeting NAFTA, China, and now the European Union, with no resolution to any of these disputes in sight.”
RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs, and more than 100,000 stores, manufacturing facilities, and distribution centers domestically and abroad.
In a separate statement, Rich Harper, manager of international trade OIA, warned that tariffs could “significantly” raise costs for products like trekking and ski poles, tent frames, carabineers, crampons, stoves and other products made in the U.S. by outdoor companies that source steel or aluminum from Canada,, Mexico and the European Union and lead to retaliatory measures against U.S. products.
Wrote Harper, “Canada, Mexico and the European Union have already announced that they will impose retaliatory tariffs on billions of dollars worth of U.S. imports. The Canadian list includes U.S. sleeping bags that will be subject to a 10 percent tariff and the preliminary European Union list includes certain footwear products.”
The action follows a year-long investigation by the Department of Commerce which found that certain imports of steel and aluminum posed a threat to U.S. national security.
OIA is concerned about the potential impact to outdoor companies that source steel and aluminum from Canada, Mexico and the European Union. Wrote Harper, “OIA urges the administration to continue negotiations with these key allies to resolve outstanding issues so that the tariffs may be removed.”
