Advocacy News – April 3, 2025
What’s new: In an effort to address trade asymmetries on bilateral and multilateral bases, President Trump announced his plan Wednesday to impose reciprocal tariffs against nearly every US trading partner.
- If the tariffs – slated to go into effect April 9 – remain in place, they would raise effective tariff rates to nearly 20%.
- Highlights include 34% additional tariffs on Chinese import (on top of the 20% tariffs already announced), 20% against the European Union (EU) and 46% against Vietnam.
- Trump also announced a baseline rate of 10% on all imports, which will go into effect April 5.
- Canada and Mexico were spared from reciprocal tariffs, in line with some expectations and a positive development for the region. Importantly, USMCA-compliant goods continue to receive preferential treatment and are exempt from the 25% fentanyl and migration tariffs.
- The implementing executive order carved out certain import categories from the new levies (see further analysis HERE). Autos, parts, steel, and aluminum are already subject to 25% tariffs, so no additional levies will be applied. Pharmaceuticals, semiconductors, lumber, and energy will be exempt — at least for now.
Why it matters: The surge in inflation during the Biden administration and painful price increases to businesses and consumers are widely recognized as a decisive factor in the outcome of the 2024 elections. Many recent studies affirm that today’s tariff plans threaten thousands of dollars in higher prices annual for the typical American household (see further analysis HERE ).
- Approximately 56% of all U.S. imports are raw materials, components and capital goods used by domestic manufacturers. A large share of these imports simply are not available domestically in sufficient quantities or at reasonable cost.
What we’re saying: While we agree with the ultimate goal of protecting the U.S. economy and its workers from unfair trade practices, we are concerned with the broad-based nature of the proposal. Further, we would favor a more targeted, pro-growth approach on countries and regions that focus on specific issues and proposed solutions to resolve real barriers to American industry.
- It’s important to note that tariffs are only one element impacting the economy and while we work through this period of disruption, we believe state and federal governments should be focused on unleashing our economic power to generate real growth. We remain committed to an action plan of reduced taxes and streamlined regulations to unleash the power of free enterprise across our state and nation.
- The MI Chamber will continue to engage with federal decision makers, including Michigan’s congressional delegation, to relay the concerns we are hearing from Michigan businesses and consumers and advocate for sensible policies that strengthen our economic vitality.
What are your thoughts? Tell us how your business could be potentially impacted by tariffs. Your voice is critical in helping the MI Chamber be a voice of free enterprise and economic prosperity for the state. Complete our survey to assist Chamber engagement as the situation continues to unfold.
- If you’ve already participated in our survey, we’d encourage you to respond again given that the some questions have changed given the evolving nature of this issue.