As global trade and tariffs dominate the news cycle and the minds of employers, the PA Chamber provided its Investor-level members with two opportunities last week to engage with national policymakers and experts.
First, the PA Chamber convened a webinar with John Murphy, Senior Vice President and Head of International Trade at the U.S. Chamber of Commerce, who provided an in-depth analysis about the latest tariff policies and their far-reaching implications on businesses and the economy.
Murphy explained that President Trump, just minutes before the webinar began, announced a 90-day pause on most reciprocal tariffs, lowering tariff rates to 10 percent for many countries, but raising China’s to 125 percent. Murphy also broke down the economic impacts across industry sectors of the 25 percent tariffs on Canada and Mexico, both immediately and more long-term.
Murphy recognized that the “on again, off again” nature of the tariff threats and the high tariff rates on China are leading to extreme market volatility and economic challenges for American consumers and businesses. He predicted that the sooner the U.S. can get past the volatility and move toward more certainty in trade relations, the better it will be for the growth of the American economy. The discussion also focused on the impact of the tariffs on specific sectors, including steel, aerospace, and AI data centers.
Murphy noted that the stock market had an initial positive reaction to the president’s decision last week to pause broader tariffs, which the Trump administration touted as a strategic gain that could encourage negotiations. However, Murphy cautioned that China tariffs, tariffs on Mexico and Canada, and others remaining in place will continue to impact the economy and cause disruption in certain sectors.
On Friday, the PA Chamber convened a virtual roundtable with U.S. Sen. Dave McCormick and business leaders, offering Sen. McCormick an opportunity to hear directly from his constituents about the tariff impacts here in Pennsylvania. Sen. McCormick explained that the U.S. economy has several tailwinds, including the administration’s deregulatory agenda, a coordinated push among Congress and the White House to unleash American energy, and the ongoing negotiations in Congress to extend the Tax Cuts and Jobs Act. However, Sen. McCormick acknowledged that the newly enacted tariffs are creating uncertainty and said he is encouraging the administration to finalize bilateral trade deals with countries like Japan, India, and Vietnam so that these deals can serve as a template for future negotiations and provide businesses with additional line of sight.
The PA Chamber is monitoring the ongoing tariff developments and the impact they will have on our members and will continue to report updates.