Consumers wonder how Trump's tariff proposal could impact Massachusetts
NORWOOD - President-elect Donald Trump took to social media on Monday, vowing to slap a 25% tariff on Canadian and Mexican goods coming into the United States on day one of his new administration until the countries agree to curb their, "ridiculous open borders." The former president also promised to add an additional 10% tariff on goods coming from China.
China, Mexico, and Canada are the three largest importers into the United States. Mexico and Canada's top imports include computers, cars, car parts, crude petroleum, and petroleum gas, according to the Observatory of Economic Complexity.
Economists say the tariffs would act like a tax on American consumers, raising prices on any number of products.
"We typically think as a rule of thumb that about 75% of the tariff will be passed onto consumers," MIT economics professor Christopher Knittel said. "That means about 1200 extra dollars of expenses to the average U.S. household per year."
Proposal just a bargaining chip?
Ernie Boch Jr., the President and CEO of Boch Enterprises, who runs two car dealerships and imports Subaru vehicles to the six New England states, says Trump's posts are simply a bargaining chip and large tariffs are unlikely to come to fruition.
"International economic negotiations are not for the faint of heart," Boch said. "I am confident that Mexico will acquiesce to the requests of the U.S. government."
WBZ-TV spoke with Massachusetts residents who said they are unsure whether to take Trump's proposals to heart.
"I feel that it's going to hurt that consumer. That cost gets passed onto us," one consumer said.
"I don't think it's going to happen. Because I think if it happens, our prices are actually going to rise," said another.