WASHINGTON – Republicans in Alabama’s congressional delegation are backing President Donald Trump’s tariffs on Canada and Mexico as part of a larger negotiation strategy, but some, including an Alabama economist, warn that state consumers and businesses could pay a high price if the tariffs are implemented after a 30-day pause.
Tariffs are essentially taxes on the purchase of goods made in other countries, but the burden often ends up on American consumers, Samford University economics professor Art Carden said.
“The tariffs are a very inefficient way to raise revenue,” Carden said. “They make goods more expensive. They make all of us poorer.”
The Trump administration was set to install a 25% tariff on Mexican and Canadian goods and a 10% tariff on Canadian energy Tuesday. President Donald Trump paused the implementation for a month after the two countries reached stop-gap deals with the United States to put more security measures on their borders. A 10% tariff on China was imposed Tuesday and the country retaliated with a 15% tariff on coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, pickup trucks and large engine cars.
Alabama’s imported goods totaled $22.8 billion for the first seven months of 2024, according to a University of Alabama economic outlook update. Imports from Mexico topped the list in Alabama with $4.3 billion for the first seven months of 2024. China came in fourth during that same time period for the most imported goods in the state at $2.3 billion.
President Trump isn’t messing around when it comes to securing the border, stopping the flow of fentanyl, and saving American lives.
Mexico, Canada, and China can come to the negotiating table or they can pay a heavy price. https://t.co/07nWMV8Vo3
— Coach Tommy Tuberville (@SenTuberville) February 1, 2025
Rep. Dale Strong, R-Huntsville, said he wants to see fair trade instead of free trade and doesn’t want to see other countries taking advantage of America.
“I think these other countries understand that (Trump) means business and I think that America will profit from it, will benefit from it,” Strong told ADN.
Carden said imports are the real benefits of international trade and tariffs can hinder them.
“And with respect to our ability to earn income, there’s so many things that we produce and sell here that involve components made in other countries that it’s almost inconceivable that this would somehow be good for us,” Carden told ADN.
Motor vehicle parts and oil and gas are the most common imports in Alabama from Mexico. Mercedes-Benz, Honda, Hyundai and Mazda-Toyota all manufacture vehicles in Alabama.
The Alabama Department of Commerce said the tariff situation was too fluid to comment on at this time.
Mitt Walker, director of national affairs with Alabama Farmers Federation, said the state’s premiere agriculture trade association actively monitoring the proposed tariffs.
“Farmers are used to dealing with uncertainty, something they live with every day,” Walker told ADN. “This brings another level of potential uncertainty there.”
Alabama Agriculture Commissioner Rick Pate said the state’s agricultural industry is reliant on imports and exports. He said he is hopeful Trump will ensure any trade issues are resolved.
“Any changes in trade policies could impact prices, either increasing or decreasing,” Pate said in a statement. “For example, Mexico purchases poultry products from Alabama, while we import a significant amount of agricultural goods from them.”
While Alabama’s Republican lawmakers applauded how Trump’s threat of tariffs led to Mexico and Canada’s pledges to increase border security, Carden said any implementation of tariffs under the new Trump administration could be detrimental.
“I will say it as clearly as I can, these are a terrible idea,” Carden said.