NJ Consumers Could Pay More For These Products Under New Tariffs

Updated, 5:35 p.m.: Canadian Prime Minister Justin Trudeau announced Monday that tariffs on Canada initially scheduled start at midnight Tuesday have been put on hold.After a “good call” with President Donald Trump on Monday, Trudeau said on X that the proposed tariffs “... will be paused for at least 30 days while we work together.

”The prime minister added in his statement that his government would name a fentanyl czar, list Mexican cartels as terrorist groups and launch a “Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.”

Previous reporting:

NEW JERSEY — Experts predict the prices of some products could increase for New Jersey consumers as a result of retaliatory tariffs President Donald Trump imposed Saturday on three key U.S. trade partners — Mexico, Canada and China.

The tariffs on Mexico, at least, won’t take effect for another month under an agreement reached between Trump and Mexico’s President Claudia Sheinbaum, NBC News reported Monday morning. Trump spoke with Canadian Prime Minister Justin Trudeau Monday morning and the two leaders were expected to talk again in the afternoon.

The tariffs, which were initially scheduled to take effect at midnight Tuesday, impose an additional 25 percent tariff on imports from Canada, with a lower 10 percent charge on oil, natural gas, electricity and energy products. The tariff on products imported from Mexico is across the board, and China faces an additional 10 percent tariff.

The trio of executive orders almost instantly threw the world economy and Trump's own goal of cutting inflation into turmoil. The president imposed the tariffs without congressional approval and by his own acknowledgment at the perilous chance of “some pain” in the form of higher inflation, job losses and worse growth.

The effects of the tariffs could be felt by consumers in New Jersey within a couple of weeks if U.S. businesses decide to pass the retaliatory taxes along to consumers.

Chris Emigholz, Chief Government Affairs Officer for the New Jersey Business and Industry Association, said any impacts will "range widely from business to business" depending on their supply chains, where they import and export materials, and if they can find cost-effective alternatives in the United States.

“Obviously, these are very dynamic times, seeing tariffs imposed almost immediately and then paused for further discussion," he said. "With all that uncertainty, we maintain that free trade is good for business and tariffs are worrisome - though they could be used as leverage for other public policies as we saw with the Mexico border decision today."

The developments Monday put on hold at least for now the high prices on avocados, strawberries, tomatoes, and other fruit and vegetables imported from Mexico. If the tariffs take effect, beer and tequila are likely to cost more, too.

In 2023, almost three-quarters of the agricultural imports into the United States for Mexico consisted of vegetables, fruit, beverages and distilled spirits, according to the USDA. New Jersey imported $7.6 billion worth of goods from Mexico in 2023, according to the Mexican Embassy — including bakery and tortilla products, oil and gas, and audio/video equipment.

About 70 percent of the global supply of maple syrup comes from Canada, and about 60 percent of its exports went to the United States in 2023. New Jersey imports $8.9 billion in goods from Canada every year, according to the Canadian Consulate General's office in New York. Crude petroleum and fuel oil make up about $1.6 billion of that amount.

New Jersey residents also could pay higher prices for cars. Automakers ship tens of billions of dollars worth of automobiles, engines, transmissions and other components across the borders of both Mexico and Canada every week, and import billions more in parts from China. General Motors produces nearly 40 percent of all vehicles made in North America in Canada and Mexico.

Gas prices could go up, too. The United States imports about 60 percent of its oil from Canada. The tariff is lower than on other goods from Canada, and analysts expect it to be absorbed by a combination of oil producers in Canada and Mexico, U.S. refineries and U.S. consumers, The New York Times reported.

Goods from China, especially computers, cellphones and video games, could become more expensive over the next couple of months. The United States imports about 60 percent of its footwear from China, and those prices could go up as well. New Jersey imported about $13.6 billion in goods from China in 2023, according to the Consulate General of the People’s Republic of China in New York.

Tariffs on lumber and building supplies from Canada could increase the cost of building a house, worsening the housing affordability crisis. About 70 percent of the softwood lumber and gypsum, which is used for drywall, are imported from Canada and Mexico, according to the National Association of Home Builders.

“Tariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying for the tariffs in the form of higher home prices,” Carl Harris, the chairman of the association, said in a statement on Saturday.

And while the full effect of the tariffs is still up in the air, Emigholz called on the state government to prepare to help business that may be negatively impacted.

"That can come in the form of supporting in-state manufacturers impacted by tariffs and identifying domestic sources of goods that are critical to supply chains or other countries not currently targeted in tariff discussions that supply these goods," he said.

“The bottom line is we hope broad tariffs on our largest trading partners do not take place. But we can’t stand still waiting for tariffs. We need to prepare to do what we can help businesses that will be negatively impacted.”

Trump used the International Emergency Economic Powers Act to declare an economic emergency in the executive orders and implement his tariffs.
There are more than three dozen active emergencies, including measures taken to respond to the 1979 Iran hostage crisis, human rights violations in Venezuela, nuclear weapon development in North Korea and multiple actions taken by China and Russia.

The law enables a president to freeze and block transactions in response to "unusual and extraordinary" threats outside the United States.

The Associated Press contributed reporting.