White House negotiators are talking with Europe over tariffs on Aluminum and steel. And postponed tariffs against Canada and Mexico could expire as soon as next week. Officials at the Port of Mobile are watching all this activity. The State says the port generates close to one hundred million dollars a year in revenue. APR news spoke with Professor Peter Simonson who teaches supply chain management at the University of South Alabama. He says tariffs and a trade war could have a silver ling for the Port of Mobile.
“It could even be a weird situation where the port of mobile gains business, because people really start to say, look, we got to go absolutely the best place we possibly can, and that could be here,” said Simonson. “Now I don't think that's going to happen, but I you know, Stranger things have happened.”
U.S. stocks fell sharply last week after reports showed that worries among consumers and businesses about President Donald Trump's policies may be hitting the economy. The S&P 500 sank 1.7% Friday for its worst day in two months. The Dow Jones Industrial Average dropped 1.7%, and the Nasdaq composite tumbled 2.2%. One report suggested U.S. business activity is close to stalling, with optimism slumping because of worries about tariffs and other potential policies from Washington. Simonson said countermoves by other countries, plus the impact of U.S. tariffs, could hurt the Port of Mobile.
“They make goods from Mexico more expensive, so people buy less of them, so we bring less in. Then, if they're retaliatory tariffs, now we're shipping less out to Mexico. So we're reducing we're reducing our volume there as well. So both things work, work together,” he said,
Simonson said he wants to stay optimistic that the U.S. market will resolve the issue. He said lot of the business the Port of Mobile sees helps the automobile industry in Alabama and Georgia, with parts, partially built cars, and completed inventory are shipping in and out of Alabama’s Port City.
