Watch CBS News

Tariffs will increase New England electricity and gas prices, economist says

Will gas and oil prices go up in Massachusetts from Trump's tariffs? Economists think so.
Will gas and oil prices go up in Massachusetts from Trump's tariffs? Economists think so. 03:23

BOSTON - New England has dodged energy price hikes for now as tariffs were pushed off. 

President Trump announced deals to delay potential tariffs on Canadian and Mexican goods by 30 days on Monday.

Over the weekend, his administration announced 25% tariffs on both countries, a 10% tariff on Canadian energy resources, and a 10% tariff on Chinese goods.

Will tariffs increase energy prices?

On Monday morning, hours before the tariffs were expected to start, Massachusetts economists warned of the impact on New England'ss energy prices.

According to a webinar by the New England - Canada Business Council, 80% of our region's gas and diesel comes from Canada, mostly from the Irving refinery in New Brunswick, 90% of Logan Airport's jet fuel comes from Canada, and roughly 13% of New England electricity was imported from Canada in 2023.

"So, if you were to ask me how much of this 10% tax consumers would pay, it's certainly going to be more than 3 quarters of it," MIT economist Christopher Knittel said.

Due to New England's reliance on Irving for gas, Knittel said consumers can expect to start feeling pain at the pump as soon as tariffs go into effect.

Natural gas and electricity prices are a little trickier.

"The electricity price that every homeowner and business pays here in Massachusetts and New England is largely locked in over a multi-month time period, and so there's going to be a lag between when those tariffs go into effect, and a bill is paid," said Dan Dolan, the President of the New England Power Generators Association.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.