Countries around the world are responding to President Donald Trump’s new foreign trade policies with billions of dollars in retaliatory tariffs.
The U.S. Department of Commerce released a study that found states that do heavy trade with the European Union, China, Mexico, and Canada will see a significant annual tariff hike. For example California, which trades frequently with China, will see a $5.6 annual increase.
But, Christopher Geehern, the executive vice president of the organization Associated Industries Massachusetts (AIM), says that it’s also a partisan issue.
“While these retaliatory tariffs are really aimed at key Republican legislators who are supporters of President Trump, it does carry over and effect some companies here in Massachusetts,” Geehern says.
In comparison, Massachusetts, and New England as a whole, will see less of an impact. Massachusetts will feel a $266 million increase on exports like pastries, beef and certain household plastics.
The U.S. Chamber of Commerce’s analysis is part of a larger anti-tariff campaign. Along with the study, the department said Trump’s policies could result in a tit-for-tat “global trade war."
“Tariffs are beginning to take a toll on American businesses, workers, farmers, and consumers as overseas markets close to American-made products and prices increase here at home,” U.S. Chamber President and CEO Thomas Donohue said in a press release.
Geehern says he hasn’t heard of any businesses considering moving production or closing up shop in response to the retaliatory tariffs. He says with the uncertain political climate most owners are just waiting to see what happens next.
“It’s unclear whether this is going to be it, or there will be another round of tariffs or a full-blown tradewar,” Geehern says.
