Over the past few weeks, President Trump has noted interest in imposing tariffs on several countries, here’s the status of these proposals and their potential impact on businesses here in York County.
25% Duty on Imports from Columbia
- Status: Retracted
- These tariffs were noted on January 25th in response to Columbia’s government blocking the landing of two deportations flights to the country from the United States. The tariffs were retracted on January 26th after an agreement was reached to accept deportation flights, subject to guarantees for the treatment of Columbian Citizens”. (CNN, 1/27/2025)
10% Duty on Import from China
- Status: Active
- These tariffs were announced on Saturday, February 1st and cover all imports from the People’s Republic of China. The tariffs went into effect on February 4th. (BBC, 2/10/2025)
- Retaliatory Tariffs: In response, the Chinese government imposed a 15% tariff on imports of US Coal and Natural Gas, and a 10% tariff on American crude oil, agricultural machinery, and pick-up trucks. Additionally, an anti-trust investigation was announced into Google; and sanctions were announced on fashion company, PVH. Export controls were also imposed on rare earth metals. (BBC, 2/10/2025)
25% Duty on Imports from Canada, 10% on Canadian Energy Imports
- Status: Delayed for 30 day on February 3, Possibly Effective on March 4 (CNN, 2/26/2025)
- These Tariffs were announced on Saturday, February 1st, and as proposed would apply a 25% tariff on all imports from Canada apart from Canadian energy exports which would be subject to a 10% tariff. Implementation was paused until at least March 3rd. (AP, 2/3/2025)
- Retaliatory Tariffs: In response, Canada threated to impose 25% tariffs on $155 Billion of American goods, beginning with an initial $30 billion of tariffs on goods such as orange juice, beer motorcycles, and pulp and paper. A second tranche of tariffs would cover passenger, commercial, and recreational vehicles, as well as additional food products and farm goods. (Government of Canada, 2/3/2025)
25% Duty on Imports from Mexico
- Status: Delayed for 30 day on February 3, Possibly Effective on March 4 (CNN, 2/27/2025)
- These tariffs were proposed alongside tariffs on China and Canada and would apply a 25% tariff on all imports from Mexico. The issuance of the tariffs were paused until at least March 3rd. (AP, 2/3/2025)
- Retaliatory Tariffs: Specific details on retaliatory measures have not been announced; however Reuters (2/2/2025) reported that tariffs may impact agricultural exports and steel & aluminum.
25% Duty on Imports of Steel & Aluminum
- Status: Effective on March 12, 2025
- These tariffs were imposed on Monday, February 10th. A 25% tariff on steel imports has been in-effect since 2018, however, the Trump and Biden Administrations granted several exemptions to US allies: (Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the EU nations, Ukraine, and the UK). The executive order on Monday removed these exemptions and clarified definitions and removed loopholes in enforcement. Tariffs on aluminum were raised from 10% to 25% (The White House, 2/11/2025)
Global Reciprocal Tariffs
- Status: Announced on February 13, 2025, Implementation pending, possibly effective on April 2nd (Politico, 2/26/2025)
- This proposal would see the United States impose a matching tariff at the same level on the same goods to match countries which currently have a tariff on imports from the United States. This proposal notably includes value-added taxes, which are common in European countries, and tax consumption in a similar manner to a sales tax (CNBC, 2/13/2025).
25% Duty on Automobiles, Semiconductors, Pharmaceuticals
- Status: Announced on February 18, 2025, possibly effective on April 2 (Politico, 2/26/2025)
- Announced on Friday, February 14th and Tuesday, February 18th, this proposal would see the United States impose new tariffs on imports of Automobiles and other goods, including semi-conductors and pharmaceuticals. (Politico, 2/18/2025)
Impact on York County Businesses:
While the majority of the tariffs proposed by the Administration have been delayed or retracted, uncertainty in the market for raw materials and components source internationally is cause for concern. The Steel and Aluminum tariffs, if fully implemented, would increase the price of over $1.07 Billion worth of steel and aluminum that Pennsylvania imported from Canada in 2024 by approximately $268 million. This will impact transportation and construction projects and the breadth of manufactured goods that include aluminum parts.
Based on imports from 2024, the 10% tariffs on goods imported from China would impose a tax of $1.66 billion dollars on Pennsylvania businesses and consumers. As of February 27th, this tariff may be doubled to $20% adding a cumulative $3.32 Billion tariff liability of Pennsylvania consumers. Computer and electronic products represented $9.6 billion of $16.6 billion dollars of goods imported from China to Pennsylvania. Current estimates indicate that businesses and consumers that need to replace aging computers, printers, or other devices, will see their costs increase.
Businesses that utilize imported chemicals, such as those in the Biomedical sector and agricultural community, will face steeper prices for the $887 million of chemical goods imported last year. Even manufacturers that use American raw goods may face increased costs as they seek to replace and maintain their equipment. In 2024, Pennsylvania imported $746 million worth of machinery, $264 million of electronic equipment, and $117 million in motor vehicle parts from China.
Initial retaliatory tariffs from China are likely to have limited impacts, as China imports relatively little coal, natural gas, and crude from the United States, however rare earth minerals required for electronic components and advanced manufacturing may be hard to come-by due to the export controls implemented.
Tariffs proposed on Canada and Mexico would be felt more broadly by consumers and any reciprocal tariffs imposed on US exports are likely to be more deleterious to Pennsylvania economy due to the more significant export relationships between Pennsylvania firms and their clients in Canada and Mexico. Imports from Canada include over $2.1 Billion in Food products and nearly $1 Billion in pharmaceuticals and medicines. Pennsylvania maintains a positive balance of trade with Canada. Imports from Mexico, meanwhile include over $1.5 Billion in transportation equipment, including auto parts, and $728 million in food products.
| Pennsylvania Value of Trade with Selected Countries (2024) | ||
| Canada | China | Mexico |
| Overall Value of Imports | ||
| $14,242,079,357 | $16,556,477,380 | $6,694,889,343. |
| Largest Sectors & Value | ||
| Food & Kindred Products – $2.19 Billion | Computer & Electronic Products – $9.28 Billion | Transportation Equipment – $1.58 Billion |
| Chemicals – $1.84 Billion (including $982 million in Pharmaceuticals & Medicine) | Electrical Equipment – $1.12 Billion | Electrical Equipment – $1.46 Billion |
| Primary Metal Manufacturing $1.81 Billion | Miscellaneous Manufactured Goods – $967 million | Computer & Electronic Products – $767 million |
| Oil & Gas – $1.50 Billion | Chemicals – $887 million | Food & Kindred Products – $728 million |
| Overall Value of Exports | ||
| $14,511,356,224 | $3,483,337,211 | $5,145,544,952 |
Disclaimer: The information presented above is based on data collected from USA Trade Online. The information provided is for reference purposes only and should not be used as the sole basis for any decision-making. The intention of this data, as presented, is to denote possible effects to the local economy.
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