US President Donald Trump has imposed 25% tariffs on imports from Canada and Mexico, the two largest trading partners of the US, and a 10% levy on Chinese products. The move is expected to result in price increases for produce in New York City stores and could send energy prices up.
Canada is a key source of cherry tomatoes and accounts for 80% of avocados imported by the US. Mexico, on the other hand, provides 50% of the country’s produce imports. New York State also relies heavily on Canada for energy exports, particularly low-cost hydroelectricity that powers 500,000 homes.
The tariffs are expected to have a significant impact on local businesses in NYC, with higher prices affecting its over 8 million consumers. The city has already seen a decline in manufacturing jobs from 1 million to 57,000 since World War II. A trade war could further exacerbate the issue, threatening the finances of companies that sell billions of dollars in goods and services to Canada.
Tourism is also at risk, with approximately 1 million Canadians visiting NYC annually, which could shrink by 3% due to the tariffs. The creation of new housing could be affected disproportionately, with Canadian lumber being a crucial ingredient for construction. Trump’s policy on increased deportations could further increase costs and worsen New York City’s housing supply shortage.
While the impact is still uncertain, one thing is clear – the tariffs will have far-reaching consequences for NYC businesses and residents. The city’s reliance on cheap hydro power from Ontario also poses a risk, with Canadian Prime Minister Justin Trudeau considering export fees that could raise prices. An all-out trade war could imperil projects like a $6 billion clean energy transmission line, which would bring new electricity to the state.
Source: https://www.thecity.nyc/2025/02/02/tariffs-canada-new-york-business-impact