BROWNSVILLE, Texas - NovaLink Nearshore Manufacturing has posted a video on YouTube warning of the harm tariffs can cause.
The Brownsville-based company provides outsourcing solutions for both domestic and international companies aiming to start or relocate their manufacturing in Mexico.
“NovaLink Nearshore Manufacturing strongly opposes these tariffs due to their negative impact on supply chains, business growth and economic stability,” the company states.
While tariffs can serve as a policy tool, NovaLink states, they often have unintended consequences that outweigh their benefits.
“Maintaining free and fair trade between the US and Mexico is critical for businesses like NovaLink and the broader manufacturing industry.”
The company encourages policymakers to consider alternative solutions.
“The United States has proposed imposing traffic tariffs on goods and services manufactured in Mexico, aiming to influence trade policy and economic dynamics between the two nations. While tariffs are often used as a tool to protect domestic industries and generate government revenue, they also carry significant consequences that can disrupt established supply chains, increase costs for businesses and slow economic growth,” the company states.
“NovaLink strongly opposes these tariffs due to their detrimental impact on near shore manufacturing. Tariffs threaten the efficiency and cost effectiveness of cross border production, ultimately harming both US and Mexico. Businesses maintaining free and fair trade between the two countries is essential for sustaining a strong and competitive manufacturing sector.”
The NovaLink video explains what a tariff is.
“A tariff is a tax imposed by government on imported goods and services. These taxes are applied at the border when goods enter a country, making imported products more expensive compared to domestically produced alternatives.”
The video says governments use tariffs for several reasons.
“One, to protect domestic industries. Tariffs make imported goods more expensive, encouraging consumers to buy locally produced products. Two, they generate revenue. Import taxes provide additional income for the government. Three, they influence trade relationships. Tariffs can be used as a tool to negotiate trade agreements or pressure foreign governments on policy issues.”
However, NovaLink states, tariffs are ultimately paid by importers, often manufacturers and businesses, which leads to higher costs for consumers. “Companies that rely on global supply chains must either absorb the additional expense or pass it on to consumers through increased prices, impacting overall economic stability,” NovaLink states.
The NovaLink video says tariffs play a significant role in global trade and economic policy. “They affect everything from consumer prices to business decisions and international relations.” The video then lists the ways tariffs impact trade and the economy:
The Border Trade Alliance has also come out strongly against tariffs. The BTA is a grassroots, non-profit organization that provides a forum for discussion and advocacy on issues pertaining to border development and quality of life and trade in the Americas.
BTA’s core values include a commitment to improving the quality of life of border communities through trade and commerce.
BTA Chairman Pete Sepulveda, Jr. and BTA President Ms. Britton Mullen released the following joint statement about President Trump’s imposition of 25% tariffs on goods imported from Canada and Mexico:
“As we have said on multiple occasions, we celebrated when President Trump passed the United States-Mexico-Canada Agreement, which modernized our country’s trade policy and reasserted North America’s position as the globe’s most economically competitive trading bloc.
“Tariffs on our friends, neighbors, and trading partners is a significant step backwards. The cost of these new import taxes will cause lost jobs and higher prices, undermining the president’s goal of taming inflation.
“We should be striving to achieve the economic promise of USMCA and trilateral cooperation and prosperity. We hope the administration will reconsider the effects of tariffs on consumers, job creators, and the country’s economic health.”
Since 1986, the BTA has worked as a network of public and private sector representatives from the United States, Mexico and Canada. Its core values include a commitment to improving the quality of life of border communities through trade and commerce.
The Mexican American Legislative Caucus has also come out strongly against tariffs.
State Rep. Ramon Romero, Jr., chairs MALC. He said:
“The Trump Administration’s 25 percent tariff on our nation’s largest trading partners has gone into effect, sparking retaliatory tariffs from Canada, Mexico, and China, and escalating into a trade war that’s destabilizing global markets. The U.S. conducts approximately $1.6 trillion in annual trade with Mexico, Canada, and China, with Texas playing a critical role in that exchange. These tariffs will raise the cost of goods for Texans across the state. This is not just an economic blow to businesses; it’s a tax that will directly impact the pocketbooks of every Texan. The Trump Tariff Tax is bad for business and bad for Texas—hurting our economy, increasing costs, and jeopardizing jobs.”
