Union Pacific CEO Lance Fritz says trade disruptions are threatening to undermine an otherwise robust economy.
The rail company, headquartered in Omaha, Nebraska, told the Omaha World-Herald that the current trade disruption: “Affects the 7,300 communities Union Pacific serves.” Specifically, the North American Free Trade Agreement renegotiation effort is harming U.S. railways.
About 40 percent of Union Pacific traffic originates or ends outside the United States. And the railroad handles 70 percent of the business going in and out of Mexico. Union Pacific is also feeling the impact of the steel and aluminum tariffs on China as it plays a role in importing products from China.
In a speech to the National Press Club in Washington, D.C. last week, Fritz said he applauds the administration for attempting to level the playing field with China, but says the best way to do so is through “a united front with allies,” and modernizing trade agreements.
On the overall economy, Fritz says recent trade policies are “creating uncertainty that’s going to cause capital investment to slow down.”