World Affairs Council of Atlanta recently hosted Javier Díaz de León, consul general of Mexico in Atlanta, and Rosaline Kwan, Consul General of Canada in Atlanta. Ana Petrova moderated the conversation. (Marlon Hyde/WABE)
The consuls general of Canada and Mexico say that Georgia businesses that export goods to their countries should be worried about retaliatory tariffs.
The World Affairs Council of Atlanta recently hosted Javier Díaz de León, consul general of Mexico in Atlanta, and Rosaline Kwan, consul general of Canada in Atlanta, to talk about how tariffs and the current trade war are impacting our North American neighbors.
Georgia shipped more than $7 billion worth of goods to Canada last year, according to recent federal trade data.
“Canada is the number one buyer of Georgia goods in the world. Guess who is number two?” Díaz de León said.
He said President Donald Trump’s threat of a 25% tariff on both countries would be bad news for Georgia businesses.
“So in a scenario of any kind of a trade war, Georgia has a lot to lose, because thousands of jobs in Georgia rely on that trade activity of products going from Georgia to Canada and to Mexico,” Díaz de León said.
The Federal Reserve Bank of Atlanta says tariffs and retaliatory tariffs could raise consumer prices on everyday retail purchases, like food and beverages. Businesses can decide to pass on some or all of those costs on to consumers.
The move has sent shockwaves through the American economy.
The Trump administration said it will put into place a 25% tariff on all imported steel and aluminum. The European Union and Canada are retaliating with their own tariffs on U.S. industrial and farm products.
“It not only affects, of course, the cost and production, but the businesses, the workers and the consumers,” Kwan said.
She said Canadians are frustrated.
“We don’t want to be here, so let’s work to get out of this situation as soon as we can,” Kwan said.
Dozens of people including members of the World Affairs Council filled the room. A Q&A sessions invited questions from the audience. (Marlon Hyde/WABE News)
Tariffs on Canada and Mexico, barring another pause, are set to begin April 2.
Canada announced that retaliatory measures will remain in place. Meanwhile, Díaz de León said Mexico has contingency plans in the case of tariffs against Mexico and will decide whether to take countermeasures across the board.
The European Union’s tariffs target about $28 billion worth of U.S. goods, including American beef, bourbon, motorcycles and poultry.
Christopher Fagan, a partner with accounting firm Moore Colson, said poultry is one of Georgia’s largest exports, and companies could lose money because of this trade war.
“Consumers may look to source poultry from places like Brazil or Latin America,” he said. “And it will have a significant impact on Georgia businesses.”
He adds that shipping and hiring at Georgia’s ports could slow down following a booming year.
