Pennsylvania Gov. Josh Shapiro says Trump's tariffs causing "chaos" and "confusion"
"Chaos" and "confusion" are two ways Pennsylvania Gov. Josh Shapiro described the situation for businesses and consumers as the threat of President Trump's tariffs lingers. On Thursday, the governor pointed the finger directly at the White House.
"There is a whole lot of confusion in the marketplace because of the confusion Donald Trump has brought to this," Shapiro said during an event at the Port of Philadelphia.
Shapiro has been touring industries around the commonwealth that could see impacts from the president's move to place tariffs on nearly all imports. That includes a stop last week to a brewery in Bethlehem.
On Thursday, that tour took him to PhilaPort, an industry on the front lines of the tariff fight. Leaders with the port say they have plenty of concerns over what will happen next.
"Fear, instability, and unbridled risk," Michael Pearson, chairman of the board of directors with the Port of Philadelphia, said.
Leaders say the port has recently been bringing in more than ever. Shapiro said in 2024, PhilaPort posted a record volume. And the port is coming off its busiest quarter in history.
Everything from cars to electronics to clothes is unloaded on these docks. But PhilaPort is famous for its fruit imports, tops in the nation, accounting for nearly 20% of all fruit imported into the U.S.
Shapiro says that tariffs will likely cause prices to rise.
"We can't grow bananas here in Pennsylvania. They got to come from somewhere," Shapiro said. "And those bananas that have been coming from Central America, for no reason, cost a whole lot more for consumers in the market."
On Wednesday, Mr. Trump issued a 90-day pause on his reciprocal tariffs, dropping most of them to a baseline 10%. However, officials say tariffs on products like steel, aluminum and cars remain at 25%. On Thursday, the White House clarified that tariffs on China, which were not reduced, now stand at 145%
Mr. Trump's on-again, off-again tariffs have rocked the stock market over the last week. But they go back to disputes last month with levies taking effect then being quickly pulled from North American neighbors Canada and Mexico.
Pearson says his industry involves a lot of long-term planning and that uncertainty isn't good for business. He believes the uncertainty could force investors and businesses to hold on to their cash while this plays out, and that could have an impact on the 12,000 workers who rely on the port.
"It could mean job losses," Pearson said. "And it also means there's a chilling effect on capital investment."
Mr. Trump, a longtime champion of tariffs, has railed against other nations he sees as taking advantage of the U.S. on trade. He says the tariffs are aimed at slashing into the nation's trade deficit, bringing manufacturing back to the country and creating jobs.
Michael Busler, a professor of finance at Stockton University, agrees with the president's plan. He says he sees the broad tariffs as a way for Mr. Trump to push foreign nations to the negotiating table.
"He has to deal from a position of strength, and to get the trading partners to the table, he has to create a sense of urgency," Busler said.
White House officials have claimed dozens of nations have reached out seeking to discuss new trade deals since Trump's tariff announcement.
Busler admits he does see "short-term pain" with the tariffs for consumers, and has some concern about small businesses that primarily import products from places like China. But he sees this as a long game to help rebalance trade in the U.S.'s favor and open new markets.
"We can't keep going on like this. Hundreds of billions of dollars is flowing out of the country," Busler said. "In the long term, we'll be able to get foreign markets open to US manufacturers, so we'll be able to sell more goods."
Shapiro on Thursday agreed that there needs to be "more trade balance" and that the U.S. should work to fix some bad trade deals. He says he doesn't think Mr. Trump's approach is the right way to go about that.
"What the president has done here is injected chaos and increased prices on Pennsylvania consumers," Shapiro said. "That's not the answer."
