
Trump’s tariffs lead to swift response, as Maura Healey warns of rising energy costs in Massachusetts
The United States’ largest trading partners have responded to President Trump’s plan to place tariffs on their nations’ goods with tariffs of their own — and among the first economic casualties may be Bay State ratepayers, according to the governor.
Canada, Mexico, and China each answered Trump’s unilateral decision to place a 25% tariff on Canadian and Mexican goods, a 10% tariffs on Canadian energy, and to double the 10% tariff already in place on Chinese goods, by announcing new restrictive trade policies of their own on Tuesday.
Gov. Maura Healey said the tariffs will spike home heating costs across the state.
“At a time when we should be working to lower energy costs, President Trump’s tariffs will cause gas and heating costs to skyrocket on Massachusetts residents and businesses,” Healey said in a statement.
On Tuesday, Canada’s outgoing Liberal Party leader explained his nation’s response during a national address, while Ontario Premier Doug Ford announced that energy exported to New York, Michigan, and Minnesota, would see an immediate 25% surcharge.
“The U.S. tariffs came into effect in the early hours of this morning, and so did the Canadian response,” Prime Minister Justin Trudeau said. “Canada will be implementing 25% tariffs against $155 billion worth of American goods, starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion of American products in 21 days time.”
According to ISO New England, about 9% of the region’s energy comes from “imports from our neighbors in Canada and New York.”
Information provided by the governor’s office suggests a 10% tariff on gas imports from Canada could cost ratepayers “$370 million a year in Massachusetts alone and over $1 billion for the New England region,” and that’s before any trade partners’ retaliatory tariffs are factored in.
“Donald Trump should be focused on making life easier and more affordable – not picking destructive fights with our allies and largest trading partners that raise costs on everyone. This is a lose-lose that we can’t afford,” Healey said.
Mexican President Claudia Sheinbaum said that details of her country’s response would be announced Sunday, after she speaks with Trump sometime this week.
“There is no motive or reason, nor justification that supports this decision that will affect our people and our nations,” Sheinbaum said.
China, which unlike Canada and Mexico had not been given 30 days to come up with a plan to forestall a 10% tariff Trump announced on Feb. 2, responded to their tariff jumping to 20% by imposing a 15% tariff on imported U.S. chicken, corn, cotton, and wheat, and 10% duty on imported U.S. beef, pork, fruits, vegetables, soybeans, sorghum, and dairy imports. Those tariffs will apparently go into effect on March 10.
“If the U.S. insists on waging a tariff war, a trade war, or any other kind of war, China will fight till the end,” Chinese Foreign Ministry spokesman Lin Jian said during a Tuesday press conference.
The trade war comes, according to the White House, in response to Canada and Mexico allegedly failing to stem the flow of fentanyl and migrants across their borders into the U.S. The tariffs were originally announced in February but held in abeyance in light of apparent efforts by both Trudeau and Sheinbaum to meet Trump’s demands regarding their borders and drug enforcement.
“While President Trump gave both Canada and Mexico ample opportunity to curb the dangerous cartel activity and influx of lethal drugs flowing into our country, they have failed to adequately address the situation,” a fact sheet on the tariff plan shared by the White House reads.
Trudeau said the U.S. decision to launch “a trade war against Canada, their closest partner and ally, their closest friend,” was a “dumb” one, and that the inevitable lesson will be that “there are no winners in a trade war.” The Canadian Prime Minister addressed U.S. voters directly.
“We don’t want this. We want to work with you, as a friend and ally, and we don’t want to see you hurt either. But, your government has chosen to do this — to you. As of this morning, markets are down, and inflation is set to rise dramatically all across your nation. Your government has chosen to put American jobs at risk, ” Trudeau said.
Trade markets dropped sharply with the opening bell on Tuesday, spent most of the day appearing to recover but then fell again ahead of closing. The Dow Jones posted a 1.5% loss, the S&P 500 was down 1.2%, and the NASDAQ fell by 0.3%.
Herald wire services contributed.