Tariffs would raise Massachusetts energy costs by millions, Healey says
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President Trump's tariffs on Canadian and Mexican imports are set to take effect Tuesday.
Why it matters: Imposing tariffs on Canadian and Mexican imports alone could cost Massachusetts more than $3.2 billion annually, per estimates from Trade Partnership Worldwide.
Catch up quick: U.S. Commerce Secretary Howard Lutnick said Sunday that tariffs would move forward as planned, but that the severity of the tariffs will depend on negotiations.
- Lutnick and Trump said another 10% tariff on Chinese imports could be imposed over allegations that Beijing is not doing enough to stop the flow of fentanyl into the U.S.
- That would bring the full tariff on Chinese imports to 20%.
Zoom in: Gov. Maura Healey's office estimated that the energy-related tariffs alone would cost Massachusetts hundreds of millions of dollars.
By the numbers: A 25% tariff on petroleum and natural gas imports from Canada would cost Massachusetts consumers $910 million a year.
- For all of New England, the cost would exceed $2.5 billion.
- A 10% tariff on these products would cost Massachusetts $370 million a year and cost New England more than $1 billion a year.
⛽️ Massachusetts customers would pay another 20 cents per gallon at the pump, as well as for oil deliveries, with a 25% tariff.
What they're saying: "These tariffs were a bad deal last month, and they're still a bad deal now," Healey said in a statement.
- "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."
The other side: Trump insists the move will force Mexico, Canada and China to stem the flow of illegal drugs into the U.S.
- "Drugs are still pouring into our country from Mexico and Canada at very high and unacceptable levels. A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China," Trump wrote.
- "We cannot allow this scourge to continue to harm the USA," he added.
