U.S., Canada and Mexico business leaders say tariffs are impacting business expansion
Kent International CEO Arnold Kamler discusses how the tariffs from the U.S.-China trade war are negatively impacting his bicycle business.
The complications from tariffs being imposed on goods are mounting.
A survey of U.S., Mexican and Canadian business leaders indicates tariffs are creating a series of issues ranging from slowing business expansion to increasing transportation costs.
The tariffs are seen as a bigger problem than local taxes and compliance rules.
The three countries have been working on a new trade deal to replace the original NAFTA agreement.
President Trump has named its the USMCA.
The countries signed the agreement last year, but it still must be passed by lawmakers in all three before it can go into effect.
According to the survey by the professional services firm TMF Group, 53 percent say the tariffs are the biggest problem limiting business expansion.
While Trump has ratcheted up tensions over trade with China, more U.S. business leaders feel that Mexico is actually a more important trading partner.
Forty-seven percent surveyed sided with Mexico and 29 percent with China.
However, things tilt a different way when asking Mexican business leaders.
They saw China just squeezing past the U.S. as their main trading partner over the next five years by a 64 percent to 63 percent score.
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The survey also showed 57 percent expect USMCA to help the countries involved and even more expected it to help obtain foreign investment.
The tariff battle taking place between the U.S. and China are projected by the International Monetary Fund as shaving 0.8 percent off global economic output in 2020.