NEW YORK (1010 WINS) — President Donald Trump’s tariff war with Canada will hurt businesses in adjoining New York State and take money out of the pockets of New Yorkers, Gov. Kathy Hochul said Sunday.
The president signed an order on Saturday imposing stiff tariffs on imports from Canada, Mexico and China, citing the need “to protect Americans” and using the legal justification of an economic emergency.
Through the trade decision Trump hopes to press the countries to do more to stop the manufacture and export of fentanyl into the United States, and for a reduction of illegal immigration from bordering nations. The Trump administration has not said what improvements would need to be seen to merit the removal of the tariffs.
Noting her own efforts to put money toward the New York border to minimize the impacts of fentanyl and illegal immigration, Hochul said that despite Trump’s goals, the measure is simply building in a new tax.
“Canada—and this is not a surprise—is already talking about retaliatory tariffs on our products. So, our businesses are going to feel it immediately,” the governor said on MSNBC. “And also just, why are we doing this?”
Hochul said that New York and Canada have a strong trade agreement, and regional ties create a “synergy” between the communities, making it “critically important” for farmers and manufacturers in the state to produce materials Canada needs and easily get them across the border.
“Canadians are perplexed,” Canada’s U.S. ambassador said of the tariffs. “We view ourselves as your neighbor, your closest friend, your ally.”
Canadian Prime Minister Justin Trudeau said that his country would put matching 25% tariffs on up to $155 billion in U.S. imports.
Total New York-Canada trade increased to $42.6 billion in 2022, MSNBC said, with 19% of the increase coming from exports and 28% coming from imports.
Trump himself has said that Americans could feel “some pain” resulting from the trade war, which could heighten inflation in spite of his campaign promises to prioritize curbing household costs.
“This is going to be an additional tax on New York residents and American residents overall, and I don’t see a way around that. This is what we’re facing right now,” Hochul said. “In a time when I’m working so hard to put money back in New Yorkers pockets, an additional $1,300, $1,400 a year is going to take that money right back out.”
The governor also offered concerns about the impact a fluctuating New York economy would have on the rest of the country.
“New York State is the economic engine of the country. When you do something that hurts New York—because we are in such close proximity to Canada—it’s going to have a ripple effect across the country, and I’m concerned about that,” she said.
The tariffs are expected to go into effect on Tuesday.