BOSTON — The housing crisis in Massachusetts could get worse. Electric bills might skyrocket and the high food price could go even higher.
These are just some of the possible implications of a trade war with Canada. Just after President Donald Trump announced a 25% tariff on most Canadian goods, Prime Minister Justin Trudeau imposed a similar tariff on goods from the U.S.
The tit-for-tat on trade, warned Trudeau, stands to hurt everybody. Canada is America’s second-largest trading partner overall and the number one importer of U.S. goods.
“The better path is to partner with Canada, not to punish us,” Trudeau said. “Yes, we’ve had our differences in the past. But we’ve always found a way to get past them.”
Trump is punishing Canada -- as well as Mexico and China -- in part for not stopping the flow of fentanyl into the U.S. nor undocumented migrants. The president imposed a 25% tariff on Mexican goods and 10% on Chinese imports. Tariffs on energy from Canada are set lower, at 10%.
Mexico has also vowed to retaliate with tariffs of its own.
Canada is a major exporter of energy to the United States, including natural gas, oil and electricity. It is also a top exporter of lumber and potash. The latter material contains potassium and is used to make fertilizer. Higher potash prices could thus translate into higher food prices.
Governor Maura Healey called Trump’s tariffs ‘really bad economics.”
“His tariffs are going to tax every form of energy coming into our state,” Healey said. “And at a time when we’re trying to build more housing in Massachusetts, he wants to put tariffs on all the lumber that’s gonna come from Canada to help us build that housing. We’re just going to end up paying more.”
This is a developing story. Check back for updates as more information becomes available.
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