BUFFALO, N.Y. — Threats of tariffs by President-elect Donald Trump are raising flags for people on all sides of the border.
Trump posted Monday on Truth Social that he’d sign an executive order declaring a 25% tariff on all products coming in from Mexico and Canada if they don’t crack down on illegal immigration and the flow of illegal drugs.
Trump made tariffs a focal point of his economic policy on the campaign trail.
A lot of goods have no tariffs under the U.S.-Mexico-Canada Trade agreement Trump negotiated during his last term. Not only would this break the agreement, a tariff of this size could have ripple effects.
For Confer Plastics, the impact might not be large on their own business.
“All the color, the boxes they go into, the skids that they're delivered on, everything is made in America except for the tiny little safety lock that comes from China,” explained Bob Confer, the president of Confer Plastics.
With a variety of products, he’s on the fence about how proposed tariffs might play out.
“It's a mixed bag," Confer said. "They're going to help us and they're also going to hurt us.”
Many of their proprietary products are copied by companies in China and then sold for less.
“The tariffs might be a disincentive for those to get into the marketplace, which will save us considerable amount of money,” Confer said.
But a big tariff on Mexico and Canada would be more of an indirect impact, with costs of manufacturing, food and more going up.
“[Consumers are] going to lose their purchasing power," Confer said. "They're going to be focusing on buying niceties or buying necessities, [and] they're always going to choose the necessities.”
It‘s something those on the other side of the border are worried about too.
“There's a place for tariffs, but a blanket one is very concerning,” said Marty Warren, the Canadian national director for United Steelworkers.
He says when it comes to tariffs, Canada won’t be left holding the bag. It’s something Americans need to worry about, too.
“Our economies are dovetailed together," Warren said. "The steelworkers union is into most every sector in the economy, not only just heavy industry, mining, and steel and aluminum, but in every sector from education to security to hospitality.”
About $2.7 billion in goods cross the U.S.-Canada border every day, according to the U.S. Department of State.
New York alone sees $40 billion in trade every year, impacting hundreds of thousands of people, according to Ontario Chamber of Commerce president and CEO Daniel Tisch.
“Fundamentally, this, like any business relationship, you have to treat your largest customers with respect,” said Tisch.
He says this tariff battle isn’t unfamiliar with Trump.
“I still hope it can be a conversation, not a series of threats and escalating trade measures on both sides,” he added.
He notes a trade war between allies benefits nobody.
“The wonderful thing about free trade is that it's mutually advantageous," Tisch said. "I think the immediate priority is to ensure that if there are tariff walls that, to some extent, go up around the United States, it only makes sense for Canada to be within those walls.”
For now, the hope is that cooler minds will prevail.
“We need to be focused and react in ways that, yes, Canada is not going to be pushed around, I think Trump respects somebody that pushes back, but let's keep it to the stuff that matters [and] not get caught up in the rhetoric," said Warren.
While tariffs aren’t something on the average American’s mind regularly, many are getting more familiar with these intricacies. Google searches for “tariffs” spiked both after Trump’s election and after Monday’s announcement.