Energy watchers in Massachusetts are paying close attention to President Trump’s tariff orders, especially those that hit Canada with 10% on energy.
The organization that manages New England’s electrical grid said isn’t sure whether or not the move will raise energy prices, but Bay State lawmakers predict it will.
ISO New England told the Herald Sunday that it remains to be seen what effect the tariffs will have on New England rate payers.
Trump, late Saturday, declared a 10% tariff on Canadian energy to go along with 25% tariffs on imported goods, and some of that energy flows directly into New England households, according to the energy supplier.
“In 2024, 9% of electricity demand in New England was met through imports from our neighbors in Canada and New York,” the group said in a statement.
According to the Trump Administration, the president imposed 25% ad valorem, or value based, tariffs on most Mexican and Canadian goods and 10% ad valorem tariffs on Canadian energy products and Chinese goods, because “a nation without borders is no nation at all — and Mexico, China, and Canada have all been complicit in the disrespect of our borders and the tidal wave of deadly drugs into our country.”
“Enough fentanyl was seized at the northern border last year to kill 9.8 million Americans and illegal border crossings from Canada reached new records each of the last four fiscal years. The tariffs will remain in place until Canada cooperates with the United States in the fight against drug trafficking and on border security,” the White House said in a statement.
At this point ISO New England said it is “reviewing the Trump Administration’s announcement related to tariffs on imports from Canada, including energy” and they will be “assessing any potential restrictions on energy taken by Canadian officials in response to the tariffs.”
“We are seeking guidance from the administration on what, if any, role ISO New England will be required to have in implementing these tariffs. We cannot speculate on what, if any, impact these actions will have on wholesale electricity prices or the level of imports into the region,” they said.
Gov. Maura Healey said “while we all agree” that something needs to be done to curb the flow of illicit substances and illegal immigrants across U.S. borders, the president’s tariffs “against two of our most important trading partners, Canada and Mexico,” will affect the price of a wide range of goods, including energy.
The tariffs, Healey said, “are reckless and harmful.”
“Now, because of Donald Trump, anyone who buys groceries, buys a car, does a home repair or renovation, takes medicine, heats their home, is going to be paying more. Donald Trump is taking money out of the pockets of hardworking Americans,” Healey told the Herald.
It’s not just the Bay State’s residents who will pay the price of Trump’s tariffs, the governor said, but also its industries.
“His tariffs will also hurt Massachusetts businesses that will have supply chain disruptions and be hit with retaliatory exports by other countries. This will harm American families, stifle economic growth, and cost jobs,” she said.
Sen. Elizabeth Warren said tariffs can be “an important strategic economic tool,” but added that targeting our trade partners isn’t going to help fulfill Trump’s promise to bring down costs for U.S. households.
“While China is stealing our technology and actively undermining American industry, Trump is cracking down more than twice as hard on maple syrup and avocados from Canada and Mexico. How does that make sense?” she asked.
Warren said she’s worried Trump’s tariffs will allow the president to play favorites with his followers.
“I’m concerned that Trump will give cover to giant corporations to use his tariffs as an excuse to raise prices on working families – while doling out waivers to his buddies. We will hold him accountable,” she wrote.
U.S. Sen. Ed Markey said Trump’s trade war isn’t going to help the working class people who returned him to the White House.
“Instead of being helpful for workers, Trump’s tariffs are disorganized and will do nothing for economic growth. Millions of New England households are going to pay more at the grocery store and to stay warm in the middle of winter,” he said via social media.
