Tariffs strain key industries, raise prices for consumers, and threaten jobs and supply chains.
| FOR IMMEDIATE RELEASE March 4, 2025 Contact: [email protected] |
WASHINGTON – As President Trump’s latest tariffs on Canadian and Mexican imports take effect on March 4th, North Carolina businesses and consumers are bracing for immediate economic disruptions. With the state’s economy deeply connected to international trade, industries such as manufacturing, agriculture, and construction are set to experience rising costs and supply chain instability. Tariffs will also impact companies ability to invest and grow in North Carolina.
Tariff Impact on North Carolina: By the Numbers
North Carolina’s economy relies heavily on trade, with Canada ranking as the state’s largest export market, followed by China and Mexico. The 25% tariff on Canadian and Mexican imports, along with levies on Chinese and European Union goods, is expected to have widespread economic consequences.
- Manufacturing: North Carolina is home to more than 470,000 manufacturing jobs, many of which depend on imported materials. The new tariffs will increase costs for auto manufacturers, aerospace companies, and furniture makers, leading to job losses and higher prices for consumers.
- Agriculture: The state’s $111 billion agriculture industry will take a hit as tariffs disrupt trade relationships. Pork and poultry farmers, who rely on exports to Canada and Mexico, face potential revenue losses, while tariffs on fertilizers and equipment will increase operational costs.
Construction & Housing: Tariffs on lumber, steel, and aluminum will raise building costs, making homes more expensive at a time when housing affordability is already a pressing issue. Experts estimate a nearly 5% increase in construction costs across North Carolina.
What Local News is Saying
Recent headlines across North Carolina highlight the growing concern over the new tariffs:
- “Tariffs could affect NC’s major industries, threaten jobs” The News & Observer “But tariffs meant to bolster U.S. industries against foreign competition may also have a negative effect on employment, said Andrew Greenland, an economist at Elon University.”
- “Trump’s tariff threats create uncertainty for North Carolina businesses and local governments”
WUNC “President Trump’s threats to slap duties on imports are creating ugly uncertainty for governments and businesses in North Carolina.” - “Tariffs would hit NC’s economy hard” Carolina Journal “Tariffs would result in steep price hikes across nearly every sector, from food and clothing to cars and appliances.”
What Small Business Owners are Saying
- “Longtime Hendersonville apple grower Kenny Barnwell listened in to the debate and said he has had first-hand experience with what tariffs can do to industries like his.
“I know the tariffs when they were initiated before, the reciprocal tariffs came on apples, and in India, we lost the market,” said Barnwell. - “We’re trying to do the best we can to keep the prices down for as long as we can. But the way this particular situation is being handled, it’s not letting us plan. There are ways to handle things, and unfortunately, this creates too much uncertainty for small businesses where we’re literally having to make sure we’re checking in day to day and having to adapt quickly,” said Jaime Sanchez, who co-owns Epilogue in Chapel Hill.
“Jeremy Whitehurst has been crafting furniture for a few years and said there was concern the industry could be hit hard. “Whitehurst said he hopes the tariffs on Canada aren’t levied and he wants to see North Carolin’s furniture industry continue to thrive.”
Looking Ahead
As North Carolina industries brace for the effects of these new tariffs, business leaders and policymakers are calling for urgent action to minimize economic harm. With trade relationships at risk and costs rising, pressure is mounting to reverse these tariffs to safeguard North Carolina’s economy.
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Tariffs Cost US is a new campaign of Trade Connects Us, a 501(c)(4) social welfare organization dedicated to providing the public with reliable, comprehensive information about global trade and tariffs, and their impact on both businesses and consumers.
