By Siddharth Cavale
(Reuters) - For North American companies, the "wait and see" moment on tariffs is over.
U.S. President Donald Trump imposed a 25% levy on goods from Canada and Mexico, along with a 10% tariff on China, in what could be the opening stages of a full-scale trade war likely to create new headaches for executives that have been wrangling with higher costs for several years.
Tariffs on goods imported from the U.S.'s three largest trade partners could upend industries from autos to consumer goods to energy. Executives have been able to deflect questions about dealing with tariffs before Saturday's announcement, and many wanted to avoid antagonizing Trump's White House after he took office. That non-response may no longer be possible.
"All CEOs are bewildered by these non-strategic tariff tantrums being directed at our closest allies instead of adversaries," said Jeffrey Sonnenfeld, professor at Yale School of Management in New Haven, Conn.
Numerous global companies will report results this coming week, including Amazon, Ford Motor, Mondelez International and Owens-Illinois. They will likely face a barrage of questions on how they plan to mitigate these costs.
Reuters reached out to numerous companies, none of whom would comment on the record about the tariffs. Several industry associations did comment, though some were more critical than others.
The U.S. Steelworkers union, the largest industrial union in North America, criticized Trump's tariffs on Canada, citing some $1.3 trillion in trade between the two countries.
"These tariffs don't just hurt Canada. They threaten the stability of industries on both sides of the border," union president David McCall said in a statement.
Automakers like General Motors and Toyota, could shift production from foreign factories to the United States, while companies like global aluminum giant Alcoa have suggested re-routing shipments to reduce the tariff burden.
Many companies accelerated shipments in the fourth quarter ahead of Trump's return to office.
Offsetting tariffs are harder for smaller companies without global operations that need foreign parts. Numerous aerospace and auto companies operate near the U.S.-Canada border, while U.S. refiners in the Midwest rely heavily on Canadian crude oil.
Tariffs are paid by importing companies, not foreign nations, as Trump frequently claims erroneously. This week, he acknowledged that tariffs would cause short-term disruption as the costs are sometimes passed on to consumers.