Upstate New York Braces for Impact as Tariffs on Imports Set to Start

Reciprocal tariffs on imported goods are set to start Wednesday.

The Trump administration plans to match the tariffs and sales taxes charged on U.S. goods by other nations.

A U.S. imposed tariff of 25% on all steel and aluminum imports has already been in place since March 12, and a 25% tariff on imported automobiles and most auto parts is set to start Thursday.

U.S. Senator for New York, Democrat Chuck Schumer, says the tariffs will be “a gut punch” to Upstate New York, resulting in an annual cost increase of up to $6,500 for the average American family according to the Yale Budget Lab.

“Upstate New York families are especially vulnerable because of our close proximity to Canada and how much our economy is intertwined with the Canadian economy,” Schumer said. “Canada’s our neighbor, our closest ally and our number one trading partner.”

New York State imports $20.5 billion in goods from Canada each year and exports $17.4 billion according to the Consulate General of Canada in New York.

According to the Yale Budget Lab, the tariffs would increase costs for the average American family by up to:

$3,400 due to Trump’s planned reciprocal tariffs on imports

$2,000 due to tariffs on imported goods from Canada/Mexico/China

$1,100 due to tariffs on imported goods in the automotive, pharmaceutical, and chip industries

The Trump administration argues that the reciprocal tariffs on imports will “improve our trade relationships with trading partners to the benefit of American workers,” and claims that the tariffs on automobiles and most auto parts will “protect America’s automobile industry.”

The country’s largest auto manufacturing union agrees. United Auto Worker’s President Shawn Fain has voiced his support for the auto tariffs, calling the move “a major step in the right direction.”

But car prices are almost certainly set to jump for all makes and models once the auto tariffs go into effect, Thursday. U.S. Senator for New York, Democrat Kirsten Gillibrand, told WBFO she is “very concerned” about the potential impact on New Yorkers and the Buffalo Niagara region.

“[The auto tariffs] will raise prices for consumers across the board,” she said. “It affects our U.S. based and New York based manufacturers because a lot of inputs come from Canada.”

Though the Trump administration says the tariffs on autos, steel and aluminum are designed to protect those manufacturing industries, local industry leaders have sounded the alarm over the potential economic impact.

In a joint statement released in March, the Buffalo Niagara Manufacturing Alliance and the Manufacturers Association of the Southern Tier warned that continued uncertainty surrounding trade policies “threatens investment, job creation, and long-term growth in the manufacturing sector.”

The business associations said: “Manufacturers operate in a capital-intensive environment that requires long-term planning and stability. The ongoing uncertainty created by tariffs is making it harder for companies to make confident decisions about expansion, hiring, and investment in New York State. Manufacturers—small and large—are looking for pro-growth policies that foster stability and encourage investment. Tariffs that drive up costs without a clear long-term strategy undermine the strength of the manufacturing sector.”

Western New York is also bracing for the impacts of the Canadian boycott of American products and travel.

Canadian research firm Legers surveyed Canadian residents between March 14-16 and found that 51% are less likely to travel to the U.S, with respondents citing tariffs and political tensions between the two countries as top issues.

“It will deeply affect the economics of both Buffalo Niagara and other areas of our state that receive a lot of Canadian tourists,” Gillibrand said.

The U.S. Travel Association reports that even a 10% reduction in Canadian travel could mean 2 million fewer visits, $2.1 billion in lost spending and 14,000 job losses across the country.

Story by Holly Kirkpatrick/WBFO/New York Public News Network