State Treasurers Urge End to Trade War Amid Economic Concerns

Democratic state treasurers from five states have called for an end to President Trump’s trade war with Canada and Mexico, warning about the negative impact of tariffs on consumers. Key figures highlighted anticipated price hikes on essential goods, potential economic damage to local industries, and the strain on American families already facing financial difficulties.

A coalition of Democratic state treasurers from Illinois, Nevada, Colorado, Oregon, and Minnesota’s state auditor have urged President Donald Trump to immediately cease his escalating trade war with Canada and Mexico. They expressed concerns during a recent Zoom call, emphasizing that the tariffs imposed would negatively affect consumers at the ground level, leading to higher prices on essential goods.

Julie Blaha, Minnesota’s state auditor, vividly illustrated the consequences of the trade conflicts by stating, “The Trump trade wars are like a kid who stole a pickup and is doing donuts on your lawn. Even if he eventually gets that thing turned in the right direction, he still has wrecked your yard by the time he gets out.” This statement underscores the damages caused by the ongoing trade disputes.

The treasurers’ warnings came just after Trump announced a temporary exemption from the 25% tariff on Mexican goods, effective until April 2. This exemption will apply to products covered under the U.S.-Mexico-Canada Agreement, which allows for tariff-free movement of goods wholly produced or significantly altered within North America.

Illinois State Treasurer Michael Frerichs criticized the trade war as unnecessary, deeming it a “Trump tax” that will ultimately burden American consumers. He commented on the expected price increases on various essential items—including groceries and electronics—threatening the financial stability of struggling families in particular.

David Young, Colorado’s State Treasurer, highlighted the economic implications for Coloradans, stating that Mexico and Canada are key trade partners, contributing nearly $10 billion to the state’s economy. Without markets to maintain, Colorado’s agricultural, aerospace, and advanced manufacturing sectors may face severe consequences from the tariffs, potentially leading to significant business closures.

Elizabeth Steiner, Oregon State Treasurer, pointed out that the tariffs could exacerbate costs in her state, particularly impacting housing construction. With exports amounting to over $15 billion involving peers like China, Mexico, and Canada, the tariffs threaten to inflate housing costs and jeopardize jobs in construction, manufacturing, and technology sectors within Oregon’s economy.

In conclusion, the coalition of state treasurers has strongly voiced their worries regarding the detrimental effects of President Trump’s trade war on consumers and local economies in their states. They argue that these tariffs are unnecessary and will likely lead to increased prices on essential goods, adversely affecting American families and businesses alike. With significant trade partnerships at stake, the ongoing conflicts could jeopardize various industries and further burden those already facing economic challenges.

Original Source: www.usnews.com