Postponed tariffs on Mexico, Canada leave specter of uncertainty over international trade
WCVB, Sharman Sacchetti
Despite reported agreements to postpone President Donald Trump’s tariffs against Canada and Mexico, Massachusetts politicians and business groups say the looming threat can cause uncertainty for the business world.
“I think most people realize tariffs equal tax. It will be a tax,” said Jim Brett, CEO of the New England Council.
“We can ill afford to have the negative impact that these tariffs stand to have on our businesses and families,” said Brooke Thompson of Associated Industries of Massachusetts.
Rep. Stephen Lynch, who on Monday decried the “stupidity” of the threatened tariffs, warned that consumers could expect higher energy costs, higher lumber prices and more expensive grocery bills if tariffs ever took effect.
“When you have someone in the president’s position who can increase the cost of all your materials by 60%, that presents an unworkable situation for businesses,” Lynch said.
Trump had said his planned tariffs on Mexico, Canada and China were partly aimed at combating the illicit flow of fentanyl into the U.S. The synthetic opioid is among the class of drugs responsible for the majority of U.S. overdose deaths.
Trump and Mexican President Claudia Sheinbaum said Monday that their planned tariffs were on hold for a month to give time for further negotiations and Mexico said it planned to deploy 10,000 members of its national guard to address drug trafficking.
Later Monday, Canadian Prime Minister Justin Trudeau said the tariffs proposed against his country would also be postponed by at least 30 days after he promised more cooperation on border issues.
Gov. Maura Healey also said the plan was ill-advised and that she hoped the administration would reconsider.
“These actions create a tremendous amount of uncertainty and chaos. What our businesses need in Massachusetts, they need to have certainty in the supply chain,” Healey said.
“It’s the disruption that all this causes. American business thrives on predictability,” Lynch said.