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A new analysis by the U.S. Chamber of Commerce finds the Trump administration’s plan to impose a 5 percent tariff on all goods from Mexico starting on June 10 could cost Massachusetts over $170.11 million.
The state currently imports around $3.4 billion worth of goods and services from Mexico.
“Imposing tariffs on goods from Mexico is exactly the wrong move. These tariffs will be paid by American families and businesses without doing a thing to solve the very real problems at the border,” Neil Bradley, executive vice president and chief policy officer, U.S. Chamber of Commerce, said in a statement. “Instead, Congress and the president need to work together to address the serious problems at the border.”
A 5 percent tariff on goods the U.S. imports from Mexico, which last year totaled $346.5 billion, would result in a potential tax increase on American businesses and consumers of $17 billion. Furthermore, that number would eclipse $86 billion should the tariffs reach President Donald Trump’s threatened cap of 25 percent. If tariffs reached that level, it would cost the Massachusetts economy nearly $850.5 million.
Other states will suffer more than Massachusetts, however. According to the chamber, Texas would be the worst off: 5 percent tariff would threaten a $5.35 billion tax on $107 billion of state imports while a 25 percent tariff would threaten a $26.75 billion tax on state imports. Michigan, with its auto industry tied closely to Mexico, would suffer the next-biggest hit, with $56 billion worth of goods imported from Mexico in 2018. A 5 percent tariff would threaten a $2.8 billion tax on state imports while a 25 percent tariff would threaten a $14 billion tax.
