Gov. Healey warns Trump’s tariffs could cause Massachusetts energy bills to ‘skyrocket’
By Mary Saladna, WCVB
Energy prices for Massachusetts consumers could “skyrocket” if President Donald Trump’s tariffs on Canada and Mexico take effect as planned on Tuesday, Gov. Maura Healey warned.
Trump had threatened to impose tariffs in February before postponing them at the last minute when Mexico sent 10,000 National Guard troops to their shared border to crack down on drug trafficking and illegal immigration, and Canada promised more cooperation on border issues.
“These tariffs were a bad deal last month, and they’re still a bad deal now,” Healey said in a statement issued Monday. “Trump is putting a tax on energy, housing, groceries, cars, electronics, and appliances that we rely on – and we will all pay the price.”
The tariffs would be paid by U.S. importers, who would then try to pass along the higher costs to consumers through higher prices.
“I think most people realize tariffs equal tax. It will be a tax,” Jim Brett, CEO of the New England Council, said last month.
“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.
Trump himself has warned of possible fallout. “WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!),” Trump said in a social media post last month. “BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”
According to Healey’s statement, the cost of a 25% tariff on petroleum and natural gas imports from Canada would be approximately 20 cents per gallon in extra costs for gasoline and home-heating oil. She said that would add up to $910 million annually for Massachusetts consumers and over $2.5 billion for the New England region.
If the tariff on petroleum and natural gas imports from Canada were 10%, Healey said that would add up to $370 million annually in Massachusetts alone and over $1 billion for the New England region.
“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. “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.”
Canadian leaders vowed that if America wants a trade war, they may get one.
The Premier of Ontario, Doug Ford, chimed in.
“They need to feel the pain. They want to come out as hard,” Ford said. “We’re going to come back twice as hard.”
Previously, Healey has also warned about the impact of the threatened tariff on imported lumber and how that could impact new building projects in the state.
The tariff brinkmanship and threat of higher prices follows nearly a month of outrage over high utility costs that led Massachusetts regulators to slash the state’s energy efficiency plan as a way to trim customers’ utility bills.
Mike Armstrong of Armstrong Advisory Group, based in Massachusetts, said the tariffs would have “sweeping effects on American households,” should the tariffs stay in effect for an extended amount of time.
Armstrong also said that the auto industry estimated that the tariffs could add as much as $12,000 to the sticker price of a vehicle.
“It would add significant costs. Food, energy, cars,” Armstrong said. “You’re talking about substantial increases.”
The discussion around the increasing tariffs is also shaking consumer confidence.
“I’m just worried about individuals who are already struggling,” Simmons College student Anahya Nembhard said. “How it’s going to be 10 times worse.”
Meanwhile, others are worried about what the future could look like for relatives.
“It also makes me really worried about my parents and them being able to retire,” Suffolk University student Ariana Stoneking said.
Trump is expected to lay out his tariff plan in a joint address Tuesday night before Congress.
He warns there will be pain to achieve a long-term gain.
“The question is, what is their definition of short-term pain and how severe are we talking?” Armstrong said.