By John Sharp
al.com
(TNS)
President Donald Trump’s trade policies are creating alarming economic headwinds in the national economy with sweeping tariffs and few exemptions that are leading to soaring prices, a leading official with the U.S. Chamber of Commerce said Wednesday.
Tom Wickham, vice president and managing director of government affairs with the U.S. Chamber, delivered the message during the 11th annual State of the Economy event at the Saenger Theatre in Mobile, AL. His remarks marked a rare public criticism from a major business group in a year when corporate leaders have largely stayed quiet about President Donald Trump’s tariff strategy.
“This is something we spend a lot of time on,” Wickham said. “Tariffs are a tax. The U.S. Chamber has been opposed to broad based tariffs over 100 years. The tariffs by the Trump administration are particularly impactful.”
Wickham said Trump’s tariff policy amounts to a potential $600 billion “tax increase annually,” including about $202 billion on small businesses. He noted that 4,500 Alabama businesses are importers affected by tariffs, and the state relies on roughly $10 billion in imports.
“What we are seeing as a result of tariffs is they are causing prices to increase,” Wickham said. “You all who shop know this. We are getting the numbers.”
A chart he presented showed inflation remains stubbornly high, with coffee up 20.9%, ground beef up 12.8% and bananas up 6.6%. While the administration eased tariffs on some goods last week, including coffee, beef and bananas, Wickham said exemptions have been rare compared to Trump’s first term.
Despite those concerns, Mobile’s economy is surging. Local Chamber officials called it the “golden age of Mobile,” citing growth in construction, manufacturing, logistics and health care. Gross domestic product growth in Mobile County is nearly double the national average and higher than the rest of Alabama. The cost of living remains competitive, and employment is booming.
“The economy is strong right now,” said David Rodgers, vice president of economic development with the Mobile Chamber. “We are seeing strong economic GDP growth, and it’s bullish for 2026. But we have to continue to attack the barriers of entry for our labor force. We have to continue to attract new and expanding business for this community.”
Rodgers acknowledged that uncertainty over tariffs is a risk for the region, where the Alabama State Port is a major economic driver. Consumer demand has dropped 24%, he said, creating pressure on the local boom.
“The uncertainty is a fear,” Rodgers said. “We have to continue to work with our partners with the U.S. Chamber. They understand how federally these things can affect us. The majority of our businesses are negatively impacted by tariffs.”
Wickham said tariffs are creating long-term uncertainty that could persist even under a new president or Congress.
“We hear from businesses all the time they are running in place amid the uncertainty of tariffs, politics and world events,” he said. “You are not alone if you feel that uncertainty. The administration and Congress need to address that. It lays over the U.S. economy like a blanket and stifles growth.”
The national Chamber, representing 300,000 companies in the U.S., has also sued the Trump administration. Last month, the U.S. Chamber filed a lawsuit against the administration over Trump’s $100,000 fees on H-1B visas.
The Chamber argues that companies use H-1B visas to hire skilled foreign workers, creating a boost for the entirety of the U.S. economy. Employers typically pay a few thousand dollars for each visa, but Trump’s policy tacks on a $100,000 charge per application.
“That was a hard decision, but the U.S. Chamber has sued Democratic and Republican administrations (before),” Wickham said. “The $100,000 did not comport with law.”
He said the Chamber remains hopeful that Trump’s presidency can usher in sweeping immigration reform, something the organization supports.
“We have a coalition of 500 folks who are trying to lean into that effort,” Wickham said.
Despite concerns over tariffs and immigration, the Chamber has been generally supportive of Trump’s policies particularly within the One Big Beautiful Bill Act signed into law on July 4.
Highlights include:
- Making the pass-through business deduction permanent. The deduction allows partnerships, sole proprietorships, limited liability companies and others a 20% deduction on net business income. Wickham said the deduction will affect 31,000 businesses within Alabama’s 2nd congressional district which includes most of Mobile and Montgomery.
- Increasing child tax credits for businesses. He said up to $500,000 in child care expenses can be written off for businesses. Also, small businesses are able to pool resources together for day care services, and also apply for a tax credit, he said.
- Rural hospitals in Alabama will be eligible to receive a portion of $50 billion set aside as part of the Rural Health Transformation Program (RHTP). Alabama is among the states that have since applied for funding.
Photo caption: An aerial view of large cargo ships moored along the river at the Port of Mobile in Alabama. (Art Wager/iStock)
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©2025 Advance Local Media LLC. Visit al.com. Distributed by Tribune Content Agency LLC.
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