President Donald Trump announced Monday that tariffs on Canadian, Chinese, and Mexican imports — which could seriously damage New York businesses and personal bank accounts — will take effect on Tuesday.
Trump’s announcement immediately sent the Dow Jones Industrial Average (DJIA) into a spiral; it ended the business day Monday down 1.5%. Other financial markets also took a hit; the NASDAQ finished Monday dropped 2.6%, while the S&P 500 tumbled by 1.7%.
The president said Canada or Mexico could not avoid the 25% tariffs, which took effect Tuesday, and no deal would be reached on potentially limiting fentanyl smuggling at the borders. A 20% tariff would also be implemented on some Chinese imports. He added that reciprocal tariffs would take effect on April 2 on countries that impose duties on U.S. products.
“They’re going to have to have a tariff. So what they have to do is build their car plants, frankly, and other things in the United States, in which case they no tariffs,” Trump said at the White House.
Trump also said reciprocal tariffs would take effect on April 2 on countries that impose duties on U.S. products.
CEOs and economists say the tariffs, covering more than $900 billion worth of annual U.S. imports from its southern and northern neighbors, would seriously damage the highly integrated North American economy.
Everyone pays
Unlike taxes, tariffs are imposed when an importer brings goods into the country. Basically, any company that imports goods at first pays the tariff at customs.
But once those goods have passed through the ports of entry, you, the consumer, cover the importers’ tariff costs through higher prices for the imported goods you’re buying. When the tariff goes up, so does the price of the items you buy.
Trump explained that the higher tariffs on Canada and Mexico aimed to increase border security and boost domestic production. However, tariffs have also historically increased prices for goods because importers passed on the extra costs to consumers.
Tariffs enacted during the Great Depression a century ago also further deteriorated the global and domestic economies.
The potential impact on New York
According to a 2024 report from the Canadian Consulate General, New York imports $22.8 billion in goods from Canada, a third of which are minerals and metals (pearls, gems, precious metals, jewelry, aluminum), followed by agriculture at 13% and energy and transportation at 10% each.
Trade with Canada, the consulate general’s report noted, helps support 520,600 jobs in New York.
The Empire State also exports $29.8 billion worth of goods to Canada, including more than $10.3 billion worth of services in the financial and business sectors.
As for Mexico, trade with New York was mutual in 2023, with $3.5 billion in imports and exports exchange. The Mexican Embassy reported that most of New York’s imports from Mexico include beverages, electrical equipment and components, computers, plastic products and navigational, medical and control instruments.
On the other hand, New York sends products to Mexico, including engines, turbines, power transmission equipment, resin and synthetic rubber/fiber products, plastic products, and general-purpose machinery.
Trade with Mexico, according to the Mexican Consulate, supports 328,000 jobs in New York state.
