03/10/2025
US Tariffs emerge as “shot in the foot” conundrum.
China’s counter-tariffs on US imports appear to be already having an effect: log exporters halted shipping several containers from the Pacific Northwest to China because of higher costs.
Exports of fruits, nuts, soybeans and other agricultural products also appear to be slowing due to China’s countermeasures.
Even more troubling, China explicitly banned US soybean exports from three major US agri traders — Louis Dreyfus, CHS and Export Trading Group
While China used the pretext of sanitary issues with the exports, the move suggests a long-term decoupling from the US as China sources from other countries.
USA does not grow anything that can’t be sourced from other countries.
Newly proposed $1,000,000 fee for each ocean vessel built (wholly or partially) in China calling any of US ports will cause diversions to ports in Canada or cancelling certain services affecting export and import flow on both side of the continent.
Along with US farmers and small businesses sharing their stories of pain due to Trump’s moves, dockworkers are very exposed to Trump’s actions to reduce trade.
While it was ironworker and shipbuilder unions that pushed the port fees, longshore unions are well-placed to lobby against further trade measures.
Lobbyists for US shippers, exporters and dock workers may now join their voices in Washington that can temper Trump’s moves.
American liquor, wine and spirit brands have been pulled off shelves in many Canadian stores as part of retaliatory measures to Trump's tariffs.
The California wine industry is also concerned about Canadian consumer backlash.
"Canada is the single most important export market for U.S. wines with retail sales in excess of $1.1 billion annually," Robert P. Koch, president and CEO of the Wine Institute said in a news release.
The tariffs and threat of tariffs come at a particularly hard time as the alcohol industry is facing "unprecedented challenges in the marketplace," he said.
Alcohol is the first target of tariff ire, but other industries could follow
The Jack Daniel's response is "the first bottle to drop" in the tariff dispute, but is more symbolic and a negative hit for the brand, said Brian Bethune, a professional financial economist at Boston College.
Other industries that could see negative reactions from Canadian consumers include U.S. meat and agriculture products, U.S. apparel, U.S. autos, and hotels and airlines.
“Iconic American brands will be most affected”, said Charlie Skuba, faculty emeritus at Georgetown University's McDonough School of Business.
A decision to remove U.S. brands from distribution in Canada "goes hand-in-hand with a 'Buy Canadian' sentiment," Skuba said. "By pulling American products from the shelves, a Canadian retailer can build
its bonds with Canadian consumers who feel deeply betrayed by the United States."
Retailers' decisions to pull products is bad news for American businesses, Skuba said.