Governor Ivey: Trump tariffs 'will harm Alabama'

Brad Harper | Montgomery Advertiser

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Alabama’s Republican governor warned Monday that the fallout from tariffs proposed by the Trump administration would hurt the state’s economy.

In a statement, Gov. Kay Ivey noted that Alabama reached a record $21.7 billion in exports last year and that the largest importers of Alabama-made goods and services were Canada, China, Germany, Mexico and Japan.

“Import tariffs, and any retaliatory tariffs on American made goods, will harm Alabama, the companies that have invested billions of dollars in our state, and the thousands of households, which are dependent upon those companies for a good-paying job,” Ivey said in the statement. “I strongly oppose any efforts that may harm those companies that employ thousands of Alabamians and contribute billions to our economy.”

Last week, Alabama Sen. Doug Jones, a Democrat, said a proposal to place a 25 percent tariff on imported cars, trucks and auto parts could cause automotive plant workers to lose their jobs here. Jones joined Sen. Lamar Alexander, R-Tenn., in sending a letter to U.S. Commerce Secretary Wilbur Ross urging the administration to reconsider the plan.

“I can’t just sit by while the president’s, I believe, shortsighted proposals threaten (jobs) in Alabama,” Jones said in a media call. “The proposal is going to hurt Alabama, plain and simple.”

Ivey noted that more than 57,000 Alabamians work in the auto manufacturing sector, not including the recent announcement of a new Mazda-Toyota plant near Huntsville.

“However, this growth could be stymied if tariffs are imposed on the goods we export around the world,” Ivey said.

The Montgomery Advertiser reported about that possibility in February 2017.

More: Trump's tough trade stance may cost Alabama auto jobs

Automotive parts and components work their way through a complex web of interdependent plants throughout North America and may cross borders as many as eight times before being installed at assembly plants in the U.S., Canada or Mexico, according to a study by the nonprofit Center for Automotive Research.

Tariffs would escalate the price of each border crossing and put enormous pressure on companies to cut costs, potentially breaking down the entire supply chain.

The Trump administration has targeted allies, including Canada and Mexico, in trying to reduce a trade deficit it considers a national security issue.

That plan and a recent tariff on imported steel and aluminum has spawned dire warnings from a bipartisan mix of business leaders and politicians, who fear a growing trade war.