The Port of Mobile is bracing for Donald Trump’s tariffs against Canada and Mexico which could resume as soon as March. Automakers told CBS News that new car prices could jump by six thousand dollars each if the trade war starts up again. That could hit the Port of Mobile which handles automobile shipments with Mexico. Professor Peter Simonson teaches supply chain management at the University of South Alabama. He says the Port doesn’t just handle finished cars
“Or parts will come in from Mexico for a product that is being built in Alabama or South Georgia and then sent back to South America or Mexico,” said Simonson. “And the same thing with Canada. So those would be the biggest particular types of products that would be affected.”
Trump provoked — then called off — trade wars with Canada and Mexico but allowed one with China to move forward. He seemingly made light of potentially thorny political issues while insisting he was serious about the United States seizing Gaza, emptying out its residents and redeveloping the area into "the Riviera of the Middle East." It was an idea that friend and foe alike around the world rejected. The delay is reportedly for a month or so. That’s what has the Port of Mobile concerned. Simonson at the University of South Alabama says petroleum from Mexico is a big commodity at Alabama’s port city, and changes in shipments of cars and auto parts could hit the industry in Alabama and Georgia.
“We export and import a lot of auto parts and finished autos out of the port of mobile and some of these products will move to and from Mexico and the United States more than once in their production process,” he said,
Simonson wants to be optimistic over the U.S. market's ability to adapt and recover from Trump’s actions in the Oval Office. He says the impact on the Port of Mobile could come from the resumption of tariffs or counter moves by Mexico, Canada, or China. Tariffs he explains could hike the price of goods coming into Alabama which could lower demand, or tariffs imposed by other countries could reduce shipments going into the Port of Mobile.
Simonson says he’s trying to stay optimistic and that the U.S. market will figure a way to deal with Trump’s policies. White House aides say that tariffs, and Chinese retaliations, are not the start of a trade war because Trump's executive orders said the taxes were meant to force countries to address drug smuggling and, in the case of Canada and Mexico, illegal immigration. Trump also reportedly made a significant concession to Mexican President Claudia Sheinbaum Pardo by agreeing to take action to stem the flow of high-powered firearms from the United States into her country.
Still, Trump asserted that he wants to fix the trade imbalance as part of the negotiations with Canada and Mexico. Trump posted on his social media site regarding Canada that the talks should produce "a final Economic deal."
The White House treated Canada's decision to create a "fentanyl czar" and Mexico's deployment of 10,000 National Guard troops to the border as wins for Trump. But by most economic analyses, this was also a near catastrophe averted. The tariffs, if put in place, could increase inflation and subtract from growth.
