What to Know As Tariffs Take Effect

As a valued IAAPA North America member, we want to update you on the recent implementation of tariffs, a topic currently receiving significant media attention. We have received numerous inquiries from members about how these tariffs might impact our industry.

Yesterday, new tariffs were introduced, including a 25% tariff on imports from Mexico and Canada, a 10% tariff on Canadian energy, and an increase in tariffs on Chinese goods to 20%. These changes could have significant effects on businesses across North America.

Historically, tariffs have had mixed results in achieving their intended goals, often contributing to slower economic growth, higher inflation, and disruptions in trade relationships.

We share concerns about the potential long-term impact of these tariffs on our industry, particularly in terms of reduced consumer confidence, which could lead to decreased spending on leisure travel and shifts in travel patterns across the region. These effects could be intensified in the U.S. market if a Canadian travel boycott—currently reported in the news—occurs, and across the regional market if retaliatory tariffs are imposed.

We also understand the concerns of manufacturing and supplier members, as new tariffs have raised steel and aluminum tariffs to 25%. This could negatively affect supply chains, production costs, business investments, project planning, contracts, pricing, and other areas.

As a global organization, IAAPA supports trade policies that foster collaboration, innovation, and economic growth. The United States-Mexico-Canada Agreement (USMCA), for example, has helped advance these goals in North America.

We will continue to monitor the situation and provide relevant updates. Additionally, we are developing new resources, including webinars and research, to offer guidance during this evolving situation.

Thank you for your continued membership and invaluable contributions to our industry. If you have any questions or concerns, please don’t hesitate to reach out to NorthAmerica@IAAPA.org.

 

Michael Shelton
Executive Director and Vice President
IAAPA North America
MShelton@IAAPA.org