President Donald Trump announced plans over the weekend to tax imported goods from Mexico, Canada and China. On Monday night, the administration announced it would delay implementing tariffs on Mexico and Canada , but the taxes would still go into effect on Chinese goods Tuesday. And China responded with its own tariffs on American goods.
Local experts are keeping an eye how these federal trade policies and may affect Massachusetts residents and businesses.
“If consumers are further hurt in Massachusetts — already a very high cost state — you know, that creates problems not only for those consumers, but also for the small businesses that serve those consumers,” said Jon Hurst, president of the Retailers Association of Massachusetts.
Hurst said consumers make up 70% of the economy, so decreases in spending can have a notable effect.
Tariffs could also increase utility costs in Massachusetts. The state gets some of its energy from Canada, and the paused tariffs include a 10% levy on energy imports from the country.
Acadia Center President Dan Sosland said that would have a major impact on gas and electric utility bills, as well as heating oil and gasoline.
“Ninety percent of the jet fuel at Logan Airport comes from Canada. Eighty percent of New England’s gasoline and diesel comes from Canada,” Sosland said. “In addition to electricity across the board in terms of energy burden and inflationary cost around energy, and then that spillover effect into the whole economy really could be quite significant.”
National Grid tells GBH News that they’re continuing to assess any impacts on their networks and customers.
Gov. Maura Healey said she expects utility costs in New England to go up as high as $200 million a year if the tariffs take effect.
Greg Cunningham, who works with the Conservative Law Foundation, says the state would have to scramble to find alternatives — and that would bring other costs with it.
“When New England is having to replace that low-emission hydropower with substantially higher emitting [energy] it impacts not only our climate, but the health of our communities, our neighborhoods,” Cunningham said.