Red state Republicans defending Trump’s tariffs brace for economic ‘turbulence’

04 February

U.S. President-elect Donald Trump makes remarks at Mar-a-Lago in Palm Beach, Florida, U.S. January 7, 2025.

As developments surrounding President Donald Trump’s tariffs threats unfolded Monday, Utah’s Republican leaders defended Trump’s actions as necessary to crack down on the U.S. fentanyl crisis — while also acknowledging potential trade wars could bring higher costs and negative economic impacts.

Trump on Saturday had announced plans to implement tariffs on Canada, Mexico and China. But by Monday afternoon, his threats against Mexico and Canada were delayed by at least 30 days after leaders of the two countries agreed to increase border security efforts.

After talking with Trump, Mexican President Claudia Sheinbaum on Monday said she had agreed to send 10,000 national guard troops to the U.S. border to help stop the flow of drugs, while the U.S. in turn promised to do more to stop the flow of high-powered weapons into Mexico.

Trump postpones big tariffs against Canada and Mexico for one month

Canadian Prime Minister Justin Trudeau said in a post on X Monday afternoon that he had a “good call” with Trump, in which he agreed to implement a $1.3 billion plan at the U.S.-Canadian border to “stop the flow of fentanyl.” Trudeau announced the tariffs would be “paused for at least 30 days while we work together.”

Still, the potential of a trade war looms — and depending on how it all plays out, it could reverberate through Utah’s economy.

Aside from the United Kingdom, Canada, Mexico and China are among Utah’s top trade partners. Utah exported $1.3 billion and imported $4.9 billion in goods from Mexico in 2023, according to a recent report from the University of Utah’s Kem C. Gardner Policy Institute. Canada is the second biggest source of Utah’s imports, with $3.1 billion in imports and $1.7 billion in exports that year. China ranks No. 3, with Utah taking in $2.7 million in imports from the country and exporting $1.2 billion.

In a media availability with reporters Monday, Senate President Stuart Adams, R- Layton, acknowledged Trump’s newly announced tariffs will indeed impact Utah’s economy.

“It will,” he said, adding that Jonathan Freedman, the president and CEO of World Trade Center Utah, is “working through some of the issues. But I think it’ll have an impact, and we’ll see what happens.”

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Freedman said in a prepared statement that World Trade Center Utah was working on Monday to deal with the fallout as “we help businesses across the state navigate the complexities of shifting tariffs and trade policies.”

“Right now, we’re seeing turbulence — ongoing negotiations and changes between the federal government and key trade partners like Canada, Mexico, and China,” Freedman said. “As businesses face global economic headwinds, we have the resources and network to help them adapt. Our team is closely monitoring affected industries and regions, working with companies to develop contingency plans, optimize supply chains, explore new markets, and access funding. We’re committed to helping Utah businesses stay resilient and competitive in a rapidly changing global landscape.”

It’s unclear exactly what will come of Trump’s threats, but economic experts have warned if tariffs are imposed, they’ll likely result in higher costs for consumers and hurt businesses.

However, Adams — who often lauds Utah’s strong economic standings and business friendly environment — said he agrees with Trump’s actions.

“Yeah I do,” he told reporters. “Let me tell you why.”

Adams argued the U.S.’s fentanyl crisis has reached a point where drastic measures are necessary.

“It’s time we stopped it,” Adams said.

Fentanyl is the most common drug found in overdose deaths in Utah

The Senate president acknowledged he continually talks about the importance of the economy on Utahns’ quality of life. But he said he agreed that it’s time to crack down on fentanyl coming in from other countries

“I support 1,000% stopping fentanyl. Whatever we have to do to stop it, I’m all in on,” Adams said. “This caused some disruption, but it’s time we quit sweeping it under the rug and say, ‘We’ve got a drug problem.’ We’re either going to fix it, or not. And we need everybody’s help.”

Adams added that he hopes businesses that are impacted by the tariffs “will get on board and say, ‘We’re not going to allow drugs to come into America.’”

According to the Drug Enforcement Administration’s 2024 national drug threat assessment, suppliers in China are “still the main source for the precursor chemicals” used by cartels in Mexico to make illicit fentanyl — but India is also “emerging as a major source” for the chemicals.

A 2022 report issued by a federal commission tasked with combating drug trafficking in the U.S. also found that drug traffickers in Mexico produce most counterfeit tablets containing synthetic opioids, “but illegal pill pressing does occur to a lesser extent” in the U.S. and Canada.

Next to Mexico, drugs coming into the U.S. from Canada pale in comparison. Last year, U.S. Customs and Border Protection agents seized about 19 kilograms of fentanyl at the northern border, The New York Times reported. That’s compared with nearly 9,600 kilograms intercepted at the U.S.-Mexico border.

Pressed on whether the argument that the fentanyl crisis justifies the tariffs applies in the same way to Canada as it does Mexico, Adams said, “those are questions that I don’t know that I have the details to, but I know Canada’s involved. And there must be some reason, and I think from what I understand there’s probably a good reason to do it.”

Senate Minority Leader Luz Escamilla, D-Salt Lake City, acknowledged Trump appears to be engaging in some “leveraging,” but she said it’s coming with a cost to Americans.

Escamilla argued tariffs are “not the way to go” because they will “hurt the working class (and) the economy.” She said the U.S. should instead focus on the “root of the problem with addiction,” noting that the nation’s overdose crisis started with prescription opioids.

According to the Centers for Disease Control and Prevention, a first wave of overdose deaths began with increased prescribing of opioids in the ’90s. Nearly 500,000 Americans died from an overdose involving a prescription and illicit opioids from 1999 to 2019. Synthetic opioids, including illicitly manufactured fentanyls, were involved in a majority (64%) of more than an estimated 100,000 American overdose deaths from May 2020 to April 2021.

“Fentanyl is coming and it’s creating an issue, and we need to do everything to stop (it),” Escamilla said, “but it’s not by hurting the economy that it’s going to stop.”

Surge in overdose deaths has moved westward, even as they fall nationally

Escamilla argued that the goal should be “working together” rather than coercion.

“I just think the direct impact on the economy is going to be bad,” she said, adding that Utah already has a housing crisis. “Now, we’re talking about people’s ability to actually access food.”

Senate Majority Assistant Whip Mike McKell, R-Spanish Fork, however, said that “we absolutely should crack down.”

“Tens of thousands of Americans have been impacted every year,” McKell said. “I think it’s long overdue.”

Adams then interjected, saying: “I’m not saying this is the way, but we’ve got to find a way. And we’ll keep trying until we find a way, but this is one way to get people’s attention.

Though he didn’t yet have specifics of how Utah could be impacted, he said “we’ll try to work through it.”

“My hope is whatever the president has done with trade, with tariffs, is temporary,” Adams said. “I think we all hope it’s temporary until we can come to an agreement on how we can handle some of the bigger issues.”

Senate Majority Whip Chris Wilson, R-Logan, who is an owner of an auto dealership, acknowledged he’s “concerned,” but he added, “we’ll see what happens.”

“We get a lot of auto parts from Canada, but I haven’t seen any specifics,” he said. Pressed on whether he supports Trump’s actions, Wilson said, “Yeah, I do.”

“I think that he needs to make this stand. We’ll see what happens, but I support him, and I think we’ll work it out,” he said. “And hopefully the manufacturers have some parts on supply that won’t interrupt manufacturing.”

Adams acknowledged the fallout “will be challenging,” but leaders will be watching to see how it plays out on the national and global stage.

“Let’s see what happens,” he said.

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