New Jersey businesses and manufacturers are preparing for potential challenges following the imposition of new tariffs by President Donald Trump on Canada, Mexico, and China. These countries have responded with retaliatory tariffs on U.S. products, according to Michele Siekerka, President & CEO of the New Jersey Business & Industry Association (NJBIA).
In interviews with NJ Spotlight News and NJ101.5 radio, Siekerka shared that the reaction from New Jersey businesses has been varied. "The cost of goods is going to go up for us, and in turn, there could be a price hike for our consumers," she told NJ Spotlight News Anchor Briana Vannozzi. However, some companies view this as "short-term pain for some long-term gain," anticipating increased investment in domestic manufacturing.
Siekerka emphasized the importance of balancing potential negative impacts with incentives to encourage growth in New Jersey and across the country. She highlighted extending federal tax cuts from the 2017 Tax Cuts and Jobs Act, regulatory reforms to reduce business costs, and initiatives to lower energy costs as crucial countermeasures.
"I think in the short term it’s a shock to the system," Siekerka said during a discussion with NJ101.5 radio's Eric Scott. She stressed the need for maintaining tax relief and regulatory reform while addressing energy costs.
New Jersey manufacturers importing components not available domestically will face higher costs due to the tariffs. Siekerka advised companies planning capital expenditures involving overseas-sourced products to prepare documentation for exclusions or exemptions through the U.S. Trade Representative’s Office.
NJBIA is committed to assisting businesses in navigating these challenges by connecting them with necessary resources and working with federal representatives.
The tariff situation remains dynamic. Following announcements against Canada and Mexico, a temporary exemption was granted to automakers, providing a one-month reprieve from tariffs on cars imported under the United States-Mexico-Canada Agreement (USMCA). "We spoke with the big three auto dealers," said White House press secretary Karoline Leavitt. "We are going to give a one-month exemption on any autos coming through USMCA."
