Trade War Threatens US Climate Readiness

Among the many ways in which the Trump administration is undermining US climate resilience, the current wave of tariffs against the country’s top trading partners could be the most consequential. 

This week, President Trump ordered 25% tariffs on all goods crossing the border from Canada and Mexico, and raised duties on China to 20%. And while earlier today he suspended duties for most Canadian and Mexican products for a month, the threat of their abrupt reinstatement will loom over the two nations for as long as he is in power.

It’s a recipe for raising prices and scrambling supply chains, including for many of the raw materials and manufactured goods US homes, businesses, and cities need to harden themselves against climate risks and recover from extreme weather disasters.

“People are going to have to find new suppliers or they’re going to have to work with their current suppliers who might be charging them more,” says Russell McIntyre, Senior Policy Analyst at CoreLogic, a property data and insights company. “You might just be waiting longer to rebuild after a disaster. Couple that with some of the personnel cuts to agencies like FEMA [Federal Emergency Management Agency] that help people find those resources to help rebuild after a disaster — you could see a broader impact,” he adds.

The inflationary aspect of the tariffs is doubly pernicious. Higher prices are likely to deter individuals and businesses from making certain investments to harden their own physical assets. But they may also force local governments to delay or defer much-needed expenditures that would bolster community resilience, too. This is what trade groups representing impacted industries are saying. Mike Ireland, President and CEO of the Portland Cement Association, said the 25% duty on imported cement “could adversely affect energy and national security while delaying infrastructure projects and raising their costs.”