Washington (AP) – Marc Rosenberg, Founder and CEO of Edge Desk in Deerfield, Illinois is preparing to present a fancy ergonomic chair created to reduce customer back pain and increase their productivity. He shows the most expensive he will sell for more than $ 1,000. But he cannot be resolved at a price, and he is willingly reducing the shipment he is bringing to the United States from China.
There is a reason for his care: President Donald Trump’s tariff warfare always, again, again with the three largest trading partners of America Mexico, Canada and China.
Since taxing 25% – fees – for all imports from Canada and Mexico two days ago, Trump has been continuously supported. On Wednesday, he Autos excluded Crossing the northern and southern borders of America – well, for 30 days anyway. Then on Thursday his secretary of commerce, Howard Lutnick, told CNBC that most Canadian and Mexican products are likely to receive a 30-day return from tariffs.
This is after you already have pushed Trump’s original fees against Canada and Mexico in February for 30 days.
Rosenberg and his ergonomic furniture are claiming at a 20% fee of imports from China – which Trump raised 10% on Tuesday – but he is not sure where the fee will actually fall.
“Bad the directorate is making it very difficult to plan for the year,” he said.
Fees cause economic pain in part because they are a tax paid by the importer This is often passed on to consumers, adding inflationary pressure. They also attract revenge from trading partners, which can damage all the economies involved.
But import taxes can cause economic damage in another way, too: by complicating the decisions that businesses need to make, including that suppliers use, where to find factories, what price to charge. And this uncertainty can cause them to delay or cancel investments that help increase economic growth.
“It creates a large amount of uncertainty for multinational companies that sell products around the world, importing from the rest of the world, running these complex supply chains across many countries,” said Eswar Prasad, an economist at Cornell University. “Uncertainty will be very worrying for businesses and … will damage business investments in net.”
During Trump’s first -time trade battles, US business investments weakened at the end of 2019, persuading the federal reserve to lower its standard interest rate three times in the second half of the year to provide a compensatory economic stimulus.
Trump 2.0 is even more vague for business. Trump’s first administration set fees for specific objectives – steel and aluminum and most of China’s goods – after long investigations.
This time, Trump has called his power to declare a national emergency – apparently over The flow of drugs and illegal immigrants Across the American borders – to impose tariffs in Canada, Mexico and China with the hit of a pen. And he has expanded his objectives. Next month, for example, aims to impose “Reciprocal Tariffs” in countries that charge higher import taxes than America.
“Only the threat of tariff growth and potential revenge are making a brake – in investment, in consumer decisions, employment, employment, all of it,” said European Central Bank Chief Christine Lagarde after ECB reduces interest on Thursday to support the economy in difficulty of Europe.
His tariffs in Canada and Mexico effectively blow up a North American trade agreement of 2020, which he negotiated five years ago.
“Past trade agreements simply do not mean much if the president can violate them unilaterally and impose fees without control,” Douglas Irwin, an economist at Dartmouth College, said.
Adding uncertainty: It is unclear what is trying to achieve Trump by plastering fees for US trading partners. Sometimes he quotes border security. Sometimes he emphasizes the income that tariffs can generate for the treasury – money that can help finance his proposed tax cut. Sometimes he points to the great deficits of America’s trade with most other countries. And he has been fake Canada of the ban on US banks when in fact 16 US banks operate north of the border, according to the Association of Canadian bankers.
Since the goals are cloudy, it is difficult to see what it will take to make Trump’s tariffs leave.
Not only that, but he has imposed tariffs irregularly, creating even more confusion. For example, his administration had to return to himself last month after a customs void ended – Exception “De Minimis” -Lewing the non -task entrance to the United States of Packets from China and Hong Kong worth less than $ 800. Dali, the US postal service needed more time to figure out how to gather tasks.
Businesses have been deceived. “I have talked to many companies that are saying, ‘We are not moving forward with any investment. We need this to be resolved,” Trade lawyer Gregory Husisian said at the Foley & Ledner legal firm. At least in Trump’s first mandate “they knew what were the basic rules. Now they don’t know if we are playing monopolies or tic-tac-foot. ”
Respondents at the Institute for Supply Management Management Survey on Monday expressed complaints about tariff uncertainty. “Customers are stopping with new orders as a result of the uncertainty about tariffs,” a transport equipment company said. “There is no clear direction from the administration how they will be implemented, so it is more difficult to project how they will affect business.” A chemical company captured: “The tariff environment related to products from Mexico and Canada has created uncertainty and instability among our customers.” “
“For now, tariffs are lifting all balance because of their unpredictability and insecurity,” said John Gulliver, president of the New England-Kanada Business Council.
Taylor Samuels, Las Almas Rotas owner, a bar and restaurant in Dallas, depends on Mexico for most of the alcohol he offers.
Uncertainty about tariffs, including the potential impact on the price of raw materials such as steel and raw materials, is forcing him to review his plans to build a new restaurant.
“This construction budget is now under consideration and is likely to be delayed … as I recalculate the costs that have already been budget,” he said.
Similarly, Sandya Dandamudi from Gi Stone, a stone supplier in Agoikago for projects ranging from Obama’s presidential center to private homes and affordable housing developments, said developers should rethink their plans.
“Trade project developers such as the high budget and hotels two years ago, so they do not constitute new tariffs,” she said. “Those budgets will be thrown into the wind.”
Dandamudi said companies will either succeed in passing tariffs to their clients or will be forced to cancel the projects.
“Tariffs will be devastating for small businesses like ours,” she said. “Going forward, we will not be able to sign a new contract unless customers address fees.”
Holly Seidewand, owner of First Fili Spirits, a Saratoga Springs Specialty store, New York, selling Canadian whiskey and other specialty spirits, said her plans for the future have been waiting for tariffs. Its original plan for 2025 was almost to double its inventory and the choice it offered.
“For now, we have no plans to add more shelves or space to new items, we will adhere to the tracks we have,” she said. “This will delay the growth of our business, making us a little stagnant.” “
____
D’Ainnovensio and Anderson reported from New York. Writers of the Associated Press Rodrique Ngowi staff in Billerica, Massachusetts and Christopher Rugaber in Washington contributed to this report.