Democratic governors are sounding the alarm over President-elect Trump’s plans to slap massive new tariffs on imports, warning that the customs duties would worsen inflation and hurt economic growth.
Trump made sky-high tariffs a cornerstone of his presidential campaign, promising to levy duties of 10% or more on all imported goods and 60% on goods from China. He said last month he will act quickly to impose 25% tariffs on goods imported from Canada and Mexico — a move that would violate a major trade agreement negotiated during his first term.
California Gov. Gavin Newsom (D) called that plan a “betrayal” of consumers.
“I hope we can all agree the impacts on this region and your pocketbook will universally be felt regardless of your politics,” Newsom said last week at a press conference at the Mexico border in San Diego County. “That’s a betrayal that needs to be revealed to those that embraced and supported this agenda.”
Trump says taxing foreign-made goods will help protect U.S. jobs, punish foreign governments for allowing drugs and migrants to cross the border, and raise money for his other policy priorities such as tax cuts. Trump said on NBC’s “Meet the Press” on Sunday he doesn’t think raising tariffs will raise prices but that he “can’t guarantee” it will not.
“I’m a big believer in tariffs,” he said. “I think tariffs are the most beautiful word. I think they’re beautiful. It’s going to make us rich.”
Economists on the right and left say tariffs on imported goods will inevitably be passed onto consumers and that aggressive U.S. tariff hikes could lead foreign trading partners to retaliate, hurting U.S. manufacturers, farmers, oil refiners and other industries that rely on exports.
Colorado Gov. Jared Polis (D) and Kentucky Gov. Andy Beshear (D) are among the governors who have also raised concerns about Trump’s tariff plans.
Beshear said last month he wants to wait and see what Trump does once in office.
“We just had an election that was significantly about inflation and other core issues,” Beshear said during a press conference. “My hope is that a president who ran on decreasing inflation and making things more affordable won’t put policies into place that will raise prices. Because that’s what happens with tariffs.”
The reaction from Republican governors to Trump’s tariff threats has been more muted. Indiana Gov. Eric Holcomb (R) said last month he’s also taking a wait-and-see approach.
“Give the President-elect a chance to put some details out there,” Holcomb told Hoosier Ag Today, a farm news radio station network. He said Trump’s goal with implementing tariffs is “free and fair trade.”