TUCSON, Ariz. (KGUN) — It was a day of brinksmanship in international trade as the Trump Administration came right to the edge of slapping tariffs on Mexico and Canada—-then granted a 30 day reprieve.
We almost got a first hand lesson in what parts of international trade affect our daily lives. The Trump Administration was about to slap 25 percent tariffs on Mexico and Canada to force cooperation on immigration and drug interdiction, when first Mexico, then Canada agreed to help with those issues and President Trump agreed to a 30 day hold.
Canada was facing a ten percent tariff on oil exports. Economists said that had the potential to raise US Gas Prices.
Truckloads of Ford pickups are a common sight moving north from Mexico on I-19. Cars and Trucks are major exports from both Mexico and Canada. Many brands perceived as American, Japanese or German get final assembly in either Mexico or Canada.
Canadian lumber forms the backbone of many new homes in Arizona, some homebuilders have been watching nervously to see if tariffs would raise lumber costs.
Over the weekend the National Homebuilders Association put out a statement urging the President to reconsider, saying, “Tariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying for the tariffs in the form of higher home prices.”
Canadian lumber isn’t the only lumber Johnson-Manley Lumber sells but owner Pat Manley was keeping a close eye on what President Trump and Prime Minister Trudeau might work out.
“I've been looking at it like I really, really have no idea what somebody's emotion i.e. Donald Trump and Trudeau are looking at this whole thing, whose ego is bigger, who carries the bigger stick I truly, truly don't know. And I think that they're both out looking for a win, whatever that win is.”
Manley says he tries to keep a two month supply of lumber on hand and did not attempt to stockpile beyond that.
The tariff delay also protects your guacamole for that big game coming up. Nearly all avocados come from Mexico and they will have that 30 day reprieve.