Associations Comment on Tariffs

NAED and other industry associations commented on the tariffs placed on U.S. imports from Canada and Mexico that President Donald Trump enacted on March 4th.

“The electrical distribution industry is a vital conduit between electrical equipment manufacturers and electrical contractors,” said Wes Smith, President and CEO of the National Association of Electrical Distributors (NAED).

 “Our network of more than 5,500 distributor locations and warehouses across every state and Congressional district employs more than 500,000 Americans with great careers that are essential to building and powering America’s homes, businesses, industrial facilities, and data centers.

 “We recognize that the President has used tariffs as a tool to rebalance trade practices, encourage domestic manufacturing, and achieve other policy objectives.

 “Regardless of this, we stand ready to work with the Trump Administration and Congress to find the right balance on trade and tariff policies that expand domestic energy production, promotes a resilient supply chain, and helps ensure our grid is strong enough to reliably support our growing economy.”

“The U.S. electroindustry supports the Trump Administration’s objectives to strengthen the U.S. energy system, expand our manufacturing base and create good-paying American jobs,” said NEMA President and CEO Debra Phillips. “As the second largest U.S. exporter and second largest U.S. importer of manufactured goods, electrical manufacturers play a pivotal role in securing American energy independence and ensuring a secure and resilient grid — investing tens of billions of dollars in U.S. manufacturing and creating thousands of new jobs for American workers across the country.

“Since 2018, the electroindustry has taken significant steps to reduce reliance on Chinese materials, decreasing China’s share of U.S. imports of electroindustry goods from 27.3% in 2018 to 17.8% in 2024, while significantly growing electroindustry trade across North America by 36%, spurred by President Trump’s USMCA.

“New trade policies must provide predictability and certainty for future domestic investments, allowing for a reasonable transition period for new large-scale manufacturing to come online and for supply chains to move. “NEMA urges the Trump Administration to reach a long-term deal that strengthens trade across North America, provides business certainty for the essential electrical industry, and facilitates our shared goals of a robust energy sector and strong U.S. manufacturing base.”

“We recognize President Donald Trump’s efforts to strengthen the U.S. economy, making it more resilient and productive. The President has long been a champion of American industry, working to reduce costs for hardworking Americans, support businesses through pro-growth tax policies, and ease the regulatory burden that often stifles innovation and expansion. We appreciate his commitment to ensuring the U.S. remains strong and competitive on the global stage.

“Wholesale distribution—the backbone of the supply chain—depends on products from both Canada and Mexico to keep goods moving efficiently to businesses and consumers nationwide. Prolonged tariffs on these key allies and trading partners could create significant cash flow challenges and supply chain disruptions for distributors. Because duties must be paid immediately upon import, they divert valuable capital away from critical investments in hiring, wages, training, and expansion—the very factors that drive economic growth and support American workers. Additionally, tariff-induced disruptions risk exacerbating inflation, increasing the cost of essential goods, and placing financial strain on businesses and consumers alike.

“As negotiations continue, NAW encourages President Trump to consider these economic realities and pursue policies that enhance American competitiveness while maintaining affordability and financial flexibility for the companies that power our economy.”

“The American Lighting Association (ALA) strongly opposes the administration’s decision to impose 25% tariffs on imports from Canada and Mexico, as well as the additional 10% tariff on Chinese imports, set to take effect this week. These tariffs will significantly impact lighting manufacturers, retailers, and consumers, driving up costs across the supply chain and reducing competitiveness in the global market. Many U.S. lighting and ceiling fan businesses are small, family-owned companies that operate on tight margins. These tariffs will make it harder for them to compete, leading to potential job losses and reduced investment in domestic operations.

“Canada and Mexico are key trade partners for the U.S. lighting industry, supplying essential materials and finished products that keep prices stable and businesses thriving. Imposing tariffs on these countries will disrupt supply chains, increase costs for American manufacturers, and ultimately lead to higher prices for consumers. Our ALA Canadian members do a significant amount of business with American manufacturers and these tariffs will have a negative impact on their business as well as the Canadian lighting manufacturers that sell to many of our lighting showroom members. Additionally, with a new 10% tariff on Chinese imports, many lighting products and components that are difficult to source elsewhere will become even more expensive, further straining the industry. This new 10% tariffs comes in addition to the already enacted 10% China tariffs ALA reported on here – for a total 20% increase over the past month.

“ALA has consistently supported fair trade policies that strengthen American businesses without imposing undue burdens on manufacturers, retailers, and consumers. We previously urged the administration to extend the suspension of the Canada and Mexico tariffs in a statement here. Tariffs act as taxes on American businesses and households, making it more difficult for lighting companies to provide affordable, high-quality products.  Rather than broad tariff increases that strain key industries, the administration should pursue targeted trade negotiations that address national security concerns without disrupting economic stability.

“Canada enacting reciprocal tariffs in response has added another layer of costs and complexity to our members businesses. To avoid a further escalation, all parties should return to the negotiating table to solve these trade disagreements before further economic damage is done.

“We urge the administration to reconsider these tariffs and engage in meaningful discussions with Canada, Mexico, and China to find solutions that protect both national security and economic prosperity. ALA will continue advocating for policies that support a stable, predictable trade environment and ensure that our industry remains strong and competitive. ALA will continue to keep members updated about the potential opportunity for waivers on lighting products and is working closely with our industry partners on communicating the need to roll back these tariffs immediately.”

“The stakes couldn’t be higher for manufacturers right now,” said National Association of Manufacturers President and CEO Jay Timmons. “Many manufacturers are operating on thin margins, and the tariffs imposed today will further strain their resources.”

“For example:

• A large manufacturer in the power-engineering sector that imports more than $100 million every year in components and products from Mexico now faces increasing costs of $25 million due to the tariffs. As a major supplier to the U.S. utility and industrial market, this will directly impact the ability for domestic utilities and industrial customers to maintain a safe, efficient and secure power grid.
• Another large consumer goods manufacturer indicated the tariffs on Mexico will cost their company $200 million, and the Canadian retaliatory tariffs will add another $31 million—totaling $231 million, or $1.15 million per day.
• A small copper manufacturer had nine truckloads of copper rod sitting at the Canadian border waiting to go through Customs when the tariffs went into effect, leading to 388,000 pounds of copper goods being returned to the supplier. If the tariffs remain in effect, bringing copper—a critical manufacturing input—into the U.S. would cost the manufacturer nearly $50,000 per truckload going forward.

“To mitigate the adverse effects of today’s tariffs, manufacturers call on President Trump and Congress to implement a comprehensive manufacturing strategy that would create predictability and certainty to invest, plan and hire in America. This strategy includes the following actions:

1. Make President Trump’s 2017 tax reforms permanent and more competitive now. When President Trump signed these tax cuts into law, it was rocket fuel for manufacturing in America and made the U.S. economy more competitive on a global scale. That fuel is about to run out as key provisions have expired, and others are about to lapse. If Congress fails to act, it will cost America 6 million jobs, including more than 1.1 million manufacturing jobs. We must ensure these historic, pro-growth manufacturing provisions are made permanent and even more competitive so manufacturers can plan, grow and succeed.
2. Restore regulatory certainty. Manufacturers are spending $350 billion each year just to comply with regulations—money that could be spent on expanding factories and production lines, hiring new workers or raising wages. President Trump has taken action already to streamline burdensome regulations starting with lifting the liquefied natural gas export ban, but we need to move faster to deliver on our industry’s potential.
3. Expedite permitting reform to unleash American energy. President Trump is already ending the war on America’s energy producers, but there is more work to do. America should be the undisputed leader in energy production and innovation, but we will not reach our full potential without permitting reform. We are seeing opportunities for energy dominance fade in the face of a permitting process that takes 80% longer than other major, developed nations.
4. Strengthen the manufacturing workforce. Over the past year, we have averaged 500,000 open manufacturing jobs in America—well-paying, life-changing careers. Manufacturers are struggling to fill critical jobs. We need a real workforce strategy that ensures we have the talent to grow, compete and lead.
5. Implement commonsense trade policies that open global markets fairly and effectively. Building things in America only works if we can sell them around the world. That’s why we’re urging President Trump and Congress to provide greater predictability and a clear runway for manufacturers to adjust to new trade realities, while also making way for exemptions for critical inputs, enabling reciprocity in manufacturing trade.

“Manufacturers are investing in America in record numbers, and President Trump is focused on strengthening manufacturing in the United States to grow our nation’s economy. We look forward to working with President Trump as he works to advance policies that will help manufacturers thrive and prosper because when manufacturing wins, America wins.”