President Donald Trump’s pledge to place 25% tariffs on products from Canada could lead to an estimated $200 million annual increase in the total cost of electricity in Massachusetts, Gov. Maura Healey told the business community Thursday morning.
During his first day in office this week, Trump said he was “thinking” about placing 25% tariffs on goods arriving from Mexico or Canada as soon as Feb. 1 after first threatening the move months ago. He has also pitched tariffs on China.
Healey said tariffs on the three nations that represent Massachusetts’ largest trading partners would “harm our entire economy” and a 25% tariff on Canada alone would increase the total cost of electricity in Massachusetts by as much as $200 million each year.
“And half of that will be borne by commercial and industrial ratepayers. So there is no doubt: Tariffs will mean higher costs for residents — including for the basics they depend on, like clothing and groceries. They will mean higher costs for businesses of all kinds,” Healey said.
The first-term Democrat from Arlington, fresh off rolling out her fiscal year 2026 budget, pushed business leaders at an event hosted by the Associated Industries of Massachusetts “to do all we can to urge the administration to reconsider.”
Massachusetts trades a combined $29 billion worth of goods with Canada, Mexico, and China each year, including lumber, home and factory building materials, and energy to power homes, businesses, and cars, according to Healey.
Healey, who last year called the prospect of tariffs “devastating” for New England, said Thursday that they are “very concerning to me” and the “stakes are high.”
“Anything that hurts your business, hurts our state. That’s why we are aligned and can speak with one voice on this issue,” she told business leaders.
In a string of November social media posts, Trump tied tariffs to “thousands” of migrants crossing into the United States through Mexico and Canada who bring “crime and drugs at levels never seen before.”
He said taxes would remain until drugs like fentanyl and “all illegal aliens stop this Invasion of our Country!”
“Both Mexico and Canada have the absolute right and power to easily solve this long-simmering problem. We hereby demand that they use this power,” he said. “Until such time that they do, it is time for them to pay a very big price!”
Top Canadian ministers said this week that they were ready to retaliate if Trump moves forward with a 25% tariff on goods from the country.
Canadian Foreign Minister Mélanie Joly said officials will continue to work to prevent tariffs but said they are also “working on retaliation.”
Canadian Finance Minister Dominic LeBlanc said Trump can be unpredictable.
“It would be a mistake for the American government to proceed with imposing tariffs, in terms of the cost (of) living in the United States, in terms of jobs in the United States and the security of supply chains,” LeBlanc said.
Canada serves as the top export destination for 36 U.S. states and nearly $2.7 billion worth of goods and services cross the border each day. The country is also one of the most trade-dependent in the world and 75% of its exports go to the U.S.
Materials from the Associated Press were used in this report.
