Officials at big U.S. trade gateways say they’re worried new
restrictions on steel and aluminum imports could have sweeping impacts on
industries that rely on those raw materials, paring back the flow of an even
wider range of goods through ports.
Automobile and auto-parts manufacturers in the Southeast rely
heavily on the Port of Charleston and port services Savannah for
importing components and exporting finished products, said Jim Newsome, chief
executive of the South Carolina State Ports ity. “To the extent that this might
hurt car manufacturing, that’s not good,” Newsome said Friday. “Global trade
has been a big benefit for our country, and anything that would slow that down
I don’t think is good at all.”
Port authorities also
expressed concern over possible retaliatory measures that could be taken by
trading partners overseas. In a statement, Don Meyer, co-head of the Northwest
Seaport Alliance—made up of the ports of Seattle and Tacoma, Wash.—said
retaliatory actions could hurt the region’s agriculture and manufacturing
exporters.
“As a state in which 40% of our jobs are tied to international
trade, we are risking jobs and quality of life by levying blanket tariffs
against some of our most important trading partners and opening the door to
their retaliation.”
The NWSA port handled more than $6.8 billion in agricultural and
forest product exports in 2016.
Jonathan Gold, vice president for supply chain and customs
policy with the National Retail Federation, said in a statement that the
tariffs will have an immediate impact on consumer prices, canceling out the
gains from tax reform.
“In the long term, we could see a loss in cargo volume and all
the jobs that depend on it, from dockworkers on down through the supply chain,”
he said.
Some logistics operators
behind North America’s vast, interconnected supply chains don’t appear deterred
by Washington’s tough trade stance.
Illinois-based logistics operator SEKO Logistics expanded into
Mexico this week, and Chief Executive James Gagne says the company isn’t fazed
by slow-moving negotiations on resetting the North American Free Trade
Agreement and suggestions.
“We will figure out how to navigate any relevant tariff or trade
barriers that may come into play,” Gagne said in an interview. “Particularly in
Mexico, Canada and the U.S., the interdependence and coupling of these
economies is extraordinary. If there’s any interest by governments to try to
decouple that for the satisfaction of a constituency, I must say I think it
will be extremely difficult, at best.”
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