Trump administration announces 10% tariff on all imports
The Trump administration has placed a 10% baseline tariff on most imports, effective April 5, with additional tariffs on goods from select nations going into effect on April 9.
Canada and Mexico are exempt from these tariffs due to the fact they are currently paying the previously announced 25% tariffs that went into effect for the two countries on most imports.
On the water utility front, according to the Association of Metropolitan Water Agencies (AMWA), several countries that supply materials for water treatment to the United States have been impacted, notably a 34% tariff on China, a 46% tariff on Vietnam and a 26% tariff on India. AMWA said the effects of the tariffs could be wide-ranging and are likely to increase the cost of waterworks products such as pipe, meters and treatment chemicals.
AMWA said it encourages its drinking water utility members that are projecting costs impacts as a result of the tariffs to share the information with Megan Seymour, legal affairs manager, as AMWA strategizes policy efforts.
The National Utility Contractors Association reacted with skepticism to the news of the tariffs and urged the administration to consider exemptions for critical materials for domestic projects.
“Much of our federally funded work through recent infrastructure laws is already subject to domestic procurement requirements. But the macroeconomic effects of these new tariffs will drive up construction materials prices and make it challenging to meet the increased demand for domestically made components on all public and privately funded projects,” said NUCA CEO Doug Carlson.
“Our nation’s construction industry relies on an interconnected global supply chain for its essential materials,” he continued. “Many domestically manufactured products rely on some percentage of foreign goods, especially inputs that are not available domestically. Even for those that are available, the supply chain will not reassert itself overnight. 25 percent of steel from non-domestic sources, and the specialized iron and steel products used in underground utility projects, are essential to our industry’s projects and their efficient completion. And roughly half of America’s aluminum comes from foreign sources. It will take significant time for domestic U.S. supply to catch up to demand.
“NUCA urges the Trump administration to consider exemptions for critical infrastructure materials, at least with regards to those used in domestic infrastructure projects and supply chains…these tariffs will only delay critical infrastructure projects and drive up their costs to the taxpayer.”
Sources: NUCA, AMWA
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