What do President Trump’s tariffs mean for New York?
The Impact on Consumers and Manufacturers
According to Heather Mulligan, President and CEO of the Business Council of New York, the tariffs will have a significant impact on both consumers and the manufacturing sector. “Think about, you know, metal cans that get used for beverages, and a lot of that aluminum comes through Canada,” Mulligan said. “Obviously that’s going to have an immediate impact, and then on a sort of a more macroscale, we have manufacturers that have contracts in the U.S. that didn’t anticipate a 25% increase in some of the inputs, so it will be very difficult for them to be able to comply with the contracts.”
Free Trade vs. Tariffs
Mulligan said the Business Council supports free trade with some “guardrails.” “I think a 25% across the board tariff on everything– virtually everything– is a far cry from free trade and will certainly have some immediate cost impacts on consumers and on manufactured goods,” Mulligan added.
A Brief History of NAFTA
President Trump has previously called the North American Free Trade Agreement, known as NAFTA, the “worst trade deal ever made.” Gregory Nowell, Associate Professor of Political Science at UAlbany, explained that the complicated deal in the 1990s did lead to an unsettled economy in the United States. “A lot of people lost their jobs in the Midwest and other places, and they didn’t have to. We did too much too fast. Whether that means now that we can reverse all that by throwing up tariffs, that’s very difficult to say,” Nowell said.
New York’s Position
Nowell believes New York State is “well-situated” to ride out the impacts of the tariffs. Canada’s Prime Minister has promised retaliation for President Trump’s decision. “It’s very weird that if you’re trying to create a place for the United States, and an economic system in which the role of China is greatly reduced, that you would start treating your two closest allies, Mexico and Canada, as enemies,” Nowell added.
Why the Tariffs?
Trump has said he is imposing tariffs in order to stop illegal immigration and the trade and production of fentanyl.
Conclusion
The tariffs imposed by President Trump will have far-reaching consequences for New York, affecting both consumers and manufacturers. While some argue that the tariffs are necessary to protect American jobs and industries, others believe that they will ultimately harm the economy and lead to retaliation from other countries.
FAQs
Q: What are the tariffs imposed by President Trump?
A: The tariffs are a 25% increase on goods imported from Canada and China.
Q: Why are the tariffs being imposed?
A: President Trump has said that the tariffs are necessary to stop illegal immigration and the trade and production of fentanyl.
Q: How will the tariffs affect New York?
A: The tariffs will have a significant impact on both consumers and manufacturers in New York, particularly in the manufacturing sector.
Q: Does the Business Council of New York support the tariffs?
A: No, the Business Council of New York supports free trade with some “guardrails” and believes that the tariffs will have negative consequences for the economy.
