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        Economics expert says Trump tariffs could have billions of dollars impact on NJ economy

        Rutgers Economics Professor Tom Prusa says it will take some time to understand the full impacts.

        Matt Trapani and Tom Krosnowski

        Jan 31, 2025, 10:42 PM

        Updated 3 hr ago

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        The White House on Friday announced that tariffs against Canada, China and Mexico will take effect on Saturday.
        Economic experts say that products from new cars to avocados and alcohol may see price hikes if the tariffs alter trade patterns. Those three nations – according to the United States Census Bureau – were the country’s Top 3 trading partners in November.
        The White House says there will be 25% tariffs imposed on goods from Mexico and Canada, and 10% tariffs on those from China. President Donald Trump says he hopes that charging American companies who import from these countries will reduce their trade and increase domestic production.
        Press Secretary Karoline Leavitt says there’s an additional reason for the tariffs on China.
        “For the illegal fentanyl that they have sourced and been allowed to distribute into our country which has killed tens of millions of Americans. These are promises made and promises kept,” she said.
        But economists warn this could hurt consumers. Rutgers Economics Professor Tom Prusa says it will take some time to understand the full impacts, but given New Jersey’s significant port economy, tariffs come at a price.
        He says there’s already been increased port activity in the weeks ahead of these expected tariffs.
        “New Jersey imports almost $9 billion of goods from Canada, and we import almost $3 billion from Mexico. We export similar amounts. A 25% tariff - at least what we saw in the previous round, which mostly fell on China - we’re talking billions of dollars in impact on the New Jersey economy,” Prusa said.
        Trump threatened a similar 25% tariff against Colombia earlier this week had the country not accepted flights of deported migrants. When Colombia agreed, the tariff threat disappeared, but coffee prices still rose due to market uncertainty.