Tariffs could hike prices in NH for energy, food, car parts
By Michael Cousineau, Union Leader
Food, gasoline, home heating oil and car parts are some items that New Hampshire consumers might see higher prices for if U.S. tariffs against Mexico and Canada ultimately are enacted.
“Tariffs equal taxes,” said Jim Brett, president and CEO of the business group New England Council. “It’s a tax on the goods coming in and those will be passed on to consumers.”
News about the impending tariffs changed quickly on Monday as the Trump administration delayed tariffs against Mexico and Canada for a month after discussions with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.
President Donald Trump agreed to pause new tariffs on Mexico for one month after Sheinbaum agreed to reinforce its northern border with 10,000 Mexican national guard members to stem the flow of illegal drugs, particularly fentanyl, Trump said on Monday on social media.
Sheinbaum said the agreement also includes a U.S. commitment to act to prevent trafficking of high-powered weapons to Mexico. The two leaders spoke by phone on Monday, just hours before the tariffs were set to take effect.
Canada had committed to creating the post of a special czar to combat the smuggling of fentanyl and would ensure permanent monitoring of the shared border, Trudeau said after his second call of the day with the president.
Trump had threatened to impose tariffs on Canadian imports unless Ottawa cracked down on fentanyl smuggling and the flow of illegal migrants across the border.
“As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that. I am very pleased with this initial outcome,” Trump said on social media.
But whether the tariffs on either country will take effect a month from now is unclear, as further negotiations are planned.
Customers heating their homes with oil, natural gas or propane from Canada could feel the effects of a 10% tariff imposed on Canadian energy products fairly quickly in New Hampshire.
Irving Oil already was warning customers of impending price increases.
“There is pretty good potential for a cost increase because of it,” added Joe Sculley, executive director at the Energy Marketers Association of New Hampshire, which represents more than 90 home heating oil and propane dealers.
“If they don’t pass along the costs that they incur, they would just lose money and that’s not sustainable,” he said.
Brian Gottlob, the director of the state Economic and Labor Market Information Bureau, wrote that “Tariffs are Stupid” on his LinkedIn account.
The White House has proposed 25% tariffs on goods from Mexico and Canada, though only 10% on Canadian energy. The administration also is proposing a 10% tariff on goods from China in addition to current tariffs.
Had all that been in force in 2023, it “would have cost companies importing commodities and products into New Hampshire over $675 million and a similar amount in 2024,” Gottlob wrote in a private capacity.
“Tariffs are the most immediate threat to the continued solid economic performance (solid job, wage and income growth) of our nation,” Gottlob said. “Higher prices for imported goods in the name of making domestic producers more competitive or incentivizing production in the U.S. is a license for domestic producers to also raise prices and make the task of reducing inflation that much more difficult.”
U.S. companies also could get hurt by Canadian authorities imposing tariffs on U.S. goods brought into Canada.
Tariffs could affect certain food prices, but the one-month delay with Mexico will push off most immediate impacts.
“A lot of produce comes out of Mexico,” said Mike Violette, president and CEO of the Associated Grocers of New England in Pembroke, which serves 650 independent supermarkets and convenience stores, including more than 100 in New Hampshire.
Violette said “it’s hard to know” exactly how much tariffs would affect prices.
Lettuce, for example, is imported from Canada but could be sourced from elsewhere, Violette said.
Brett also cited dairy products from Canada and car parts from U.S. neighbors.
With 36 stores in New Hampshire, Hannaford Supermarkets spokeswoman Caitlin Cortelyou said: “While the majority of our products are sourced in the U.S., Hannaford is closely monitoring the situation for any potential impacts.”
Matt Mayberry, CEO of the New Hampshire Home Builders Association, said Canadian lumber is used in log homes, but much of the lumber used for housing in the state comes from within the United States.
“On lumber, it will have a slight impact but won’t stop things because a lot of our lumber we get from east of the Mississippi (River),” he said.
People could pay more for appliances imported from China since the U.S. has announced a 10% tariff on Chinese goods, he said.
Republican Gov. Kelly Ayotte looked for a quick resolution, “so that families don’t unnecessarily bear the brunt of increased costs when prices are already high.”
“I have real concerns about how a trade war will hurt our economic competitiveness, and I have heard from many Granite Staters that share similar concerns,” Ayotte said in a statement. “I appreciate that President Trump is fighting to get the fentanyl poison off our streets and secure our border, but I don’t want it done to New Hampshire’s disadvantage.”
With hours to go before tariffs on Canadian goods were slated to go into effect, Sculley said the situation “seems to be fluid” on whether a solution will avert the tariffs.
If the tariffs are enacted, “we don’t know how long they’ll be in place for,” Sculley said.
The business community, Brett said, “loves the word predictability” to plan for the year.
“What do you do a month from now? Are we back to square one with Mexico?” he said.