TAG Industrial Watch: February 8, 2025
Tariffs have been the talk of the town over the last week with the news of President Trump threatening to levy duties not just on Chinese imports but goods coming from America’s closest neighbors, Mexico and Canada. While Trump followed through on the 10% tariff on Chinese goods, the 25% tariff on Mexican and Canadian imports was put on hold thanks to last-minute negotiations. While the President stands firm that foreigners are responsible for paying tariffs, the reality is that American companies and thus their domestic customers are the ones stuck with the bill. The danger in thinking that tariffs are good can easily lead to a trade war as foreign heads of state levy retaliatory duties on American goods. However, with the help of history, we can hopefully avert such a mistake.
Despite a petition by more than 1,000 economists at the time, the Smoot-Hawley Tariff was passed in 1930 by President Hoover who advocated protective tariffs during his campaign. In retaliation, other nations passed tariffs on American goods leading to a collapse of global trade and helping to make a recession into the Great Depression. As TAG has pointed out before, America’s industrial market today heavily depends upon foreign imports, of which we lack the productive capacity to produce. If imports were to collapse as they did in the early 1930s, the demand for industrial space big and small would be directly impacted. With net absorption already starting the year off in negative territory, a trade war is the last thing the industrial market needs.
However, if Trump’s decision to postpone the tariffs on Mexico and Canada in return for increased border protection is any indication of how things will play out, then industrial investors can breathe a sigh of relief for the moment. Nonetheless, TAG will stay on top of this issue and advise our clients accordingly.
I N D U S T R I A L N E W S
What The ‘Mother Of All Trade Wars’ Can Teach Us
About U.S. Tariffs, According To Economists
CNBC – February 5, 2025
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Trump Imposes Tariffs On China, Mexico And Canada
Bisnow – February 1, 2025
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Trump And Leaders Of Canada And Mexico Say
Tariffs Will Be Delayed One Month After Talks
NBC News – February 3, 2025
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China’s Retaliatory Tariffs On Crude Likely
To Push US Exports Lower In 2025
Reuters – February 6, 2025
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Mexico Unveils Tax Breaks To Boost
Nearshoring And Attract Foreign Investment
GlobeSt.com – January 15, 2025
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R E G I O N A L N E W S
Exxon Considering Gulf County For $8.6B Plant
Connect CRE – January 31, 2025
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Big Deal: SL Industrial Partners Acquires 17-Building
Industrial Portfolio In Chicago Market
REjournals – January 21, 2025
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SL Industrial Partners Buys Chicagoland
Light Industrial Portfolio
Commercial Property Executive – January 21, 2024
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Ten Up-And-Coming Boomtowns
GlobeSt.com – January 22, 2025
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Industrial Outdoor Ventures Makes
10th Acquisition In Denver
Mile High CRE – December 3, 2024
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