Trump Says Tariffs, Taxes On International Nations Will “Enrich Our Residents”
JAN. 23, 2025…..If President Donald Trump places a 25% tariff on merchandise coming from Canada beginning subsequent weekend, as he mentioned this week he’s contemplating, electrical energy prices in Massachusetts may enhance by as a lot as $200 million a yr, Gov. Maura Healey advised enterprise leaders Thursday morning.
The governor mentioned she could be very involved in regards to the president’s concept to impose increased tariffs on China and new, steep tariffs on merchandise imported from Canada and Mexico. She advised Related Industries of Massachusetts that it will likely be vital for the enterprise neighborhood and her administration to talk with one voice as they urge the White Home to rethink.
“These international locations are America’s largest buying and selling companions. They’re additionally Massachusetts’ largest buying and selling companions. We commerce a mixed $29 billion price of products with them, yearly. That features lumber and supplies we construct houses and factories with; and the vitality we energy our houses, companies, and vehicles with,” she mentioned on the group’s “Government Discussion board” in Waltham, in response to remarks she ready for supply.
Whereas signing a collection of govt orders within the Oval Workplace on Monday night time, Trump advised reporters that he deliberate to place a 25% tariff on Canadian and Mexican merchandise starting Feb. 1. The New York Times reported that the president mentioned his choice was based mostly on the international locations permitting “mass numbers of individuals and fentanyl” to return into the USA. He mentioned Tuesday he plans to impose a further 10% tariff on Chinese language imports “based mostly on the truth that they’re sending fentanyl to Mexico and Canada,” the Times reported.
The governor famous to the influential enterprise group Thursday morning that business and industrial ratepayers would bear at the very least half the extra value of electrical energy if Trump’s proposed tariffs take impact.
“So there isn’t a doubt: Tariffs will imply increased prices for residents – together with for the fundamentals they rely on, like clothes and groceries. They are going to imply increased prices for companies of every kind. They are going to hurt our complete financial system,” Healey mentioned. “That could be very regarding to me, and I do know it’s to you. The stakes are excessive.”
Trump was a foil to Healey throughout her time as lawyer normal. However because the Republican received a second time period in November, Healey has typically softened her rhetoric in direction of him whereas additionally promising that Massachusetts is “not going to vary who we’re.”
In December, Healey advised the Information Service that it was vital to articulate and spotlight “why tariffs are doubtlessly actually devastating to Massachusetts and to our New England financial system” amid Trump’s pledges to wield them as a option to affect border insurance policies of different international locations.
“As any individual who’s attempting to develop housing within the state, the very last thing I would like is tariffs on the lumber coming from Canada, proper? Or all of the issues that we want for our rising robotics, superior manufacturing, AI, life sciences industries here in Massachusetts — the last thing that we need are tariffs on Asia,” she said.
The threat of tariffs also caught the attention of the Massachusetts Lottery, where the impact of inflation is felt greatest around “anything that involves paper — our bet slips, our terminal paper, and especially our instant ticket purchases,” Executive Director Mark William Bracken said last month.
“We’ll be watching what happens come the new year, given the recent announcements of upwards to 30% tariffs happening, being levied against Canada. A lot of the paper that these companies uses come from Canada and come across border, so we could be seeing some significant increases if, in fact, tariffs are implemented like it has been said that they will be by the incoming president,” he said. “So things we’re looking at that could drastically change some of our operation, our budget, right from the start, if, if our cost is going up 30% on paper products, especially on instant tickets.”
Tariffs were part of Trump’s trade policy during his first administration and he pledged Monday to “immediately begin the overhaul of our trade system to protect American workers and families.”
“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens. For this purpose, we are establishing the External Revenue Service to collect all tariffs, duties, and revenues. It will be massive amounts of money pouring into our Treasury, coming from foreign sources,” he said during his inaugural address.
Scott Bessent, Trump’s nominee for Treasury secretary, told the U.S. Senate Committee on Finance last week that the second Trump administration sees multiple uses for tariffs.
“One will be for remedying unfair trade practices,” he said. “For a more generalized tariff as a revenue raiser for the federal budget … [and] tariffs can be utilized for negotiations.”
Trump’s “tariff agenda” and its impacts on U.S. companies is among the many subjects set to be mentioned in depth subsequent week because the Massachusetts Export Middle hosts its 15th annual Export Expo just about.
“This yr’s Export Expo will concentrate on present and imminent developments in our worldwide commerce atmosphere, together with the affect of the presidential election, geopolitical panorama, coverage, regulation and enforcement on world commerce operations. Important points akin to export management and financial sanctions coverage, potential implementation of widespread tariffs, escalating regulatory enforcement and extra might be addressed, with a concentrate on serving to firms to stay nimble whereas navigating and responding to a dynamic and more and more complicated world commerce atmosphere,” the group mentioned.
