Consumers wonder how Trump's tariff proposal could impact Massachusetts
NORWOOD - President-elect Donald Trump is vowing to raise tariffs on Canadian, Mexican and Chinese goods, which is likely to mean higher prices for consumers, according to an MIT economist.
Trump took to social media on Monday, vowing to slap a 25% tariff on items coming into the United States from Mexico and Canada, 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.
"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 $1,200 extra 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, believes 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.
