Healey: Get ready for higher prices with Trump tariffs

National News

Trump’s imposed tariff on China and proposed tariffs would raise the price of goods including groceries, clothes, phones, housing, and energy, Healey said.

After President Donald Trump said he would place tariffs on goods from Canada, Mexico, and China, Governor Maura Healey warned Massachusetts residents that prices could soon skyrocket for goods from groceries to electricity. 

In a statement issued Friday, she called Trump’s planned tariffs against the U.S’s three largest trading partners “nothing more than a giant price hike.” 

Trump directed a 25% tariff on imports from Canada and Mexico and a 10% tariff on imports from China, with a 10% tariff on energy resources from Canada. The tariffs, which he said were “to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country” were scheduled to start at midnight Tuesday, but Canada and Mexico’s tariffs were put on hold after the countries agreed to focus on border enforcement and Trump agreed to a 30-day pause.

China announced several economic measures targeting the U.S. Tuesday in a retaliatory effort after Trump’s tariffs took effect. A 15% tax on certain types of coal and liquefied natural gas and a 10% tariff on crude oil, large-displacement cars, pickup trucks, and agricultural machinery will go into effect Monday. 

In her statement, Healey warned that the tariff on China and the potential tariffs on Mexico and Canada would affect the cost of groceries, clothes, phones, housing, and energy, with electricity costs in New England estimated to go up by as much as $200 million a year. 

“We need a partner in the White House who will lower costs for families and businesses in Massachusetts, and all we’ve seen thus far from this new administration are actions that will do the exact opposite,” she said in the statement. 

The current tariffs on China are twice as high as all the tariffs implemented on the country by Trump in his first presidency and Biden in his presidency, and the on-pause tariffs on Mexico and Canada would be six times as high, said Jason Furman, Aetna professor of the practice of economic policy at Harvard University. 

“We’re already off to something quite different,” Furman said. 

Smartphones and laptops, which were exempt from Trump’s tariffs on China during his first term, can be expected to “easily” go up in price by more than $100, Furman said. The tariffs on China will also raise the price of TVs, other electronics, furniture, clothing, and toys. 

Mexico produces agricultural products like fruits, vegetables, avocados, and tomatoes, and Canada exports dairy like milk, cheese, and butter as well as fish and seafood, so “produce would become much pricier if those tariffs end up happening,” Furman said. 

Tariffs on Canada would also raise the price of cars, car parts, and energy. Furman estimated car prices would go up by about $3,000 on average. As one of the largest suppliers of softwood lumber in the U.S., these tariffs would also raise the cost of housing, construction, and home renovation, he said.

Likewise, Mexico’s tariffs would impact cars and car parts, beer and tequila, and TVs and other electronics in addition to produce. 

Beyond consumer impact, Furman emphasized the impact tariffs can have on workers across manufacturing fields. 

“It would be very hard to make cars in the U.S., for instance, if the parts faced a 25% tariff, because a typical auto part crosses the border six times,” Furman said. “It would become much cheaper to import them from Korea or Japan or Europe, and within a couple months you would see auto parts factories grind to a halt.”

In a post on X Saturday, Sen. Elizabeth Warren said Trump’s actions “won’t protect jobs, keep Americans safe, or bring down costs for families.”

Healey similarly emphasized the importance of high costs, which she called “the number one issue facing the American people.” 

“We will hold him accountable,” Warren said.