President Donald Trump’s sweeping tariff announcement on Wednesday has sparked concern across Massachusetts. The president introduced a 10% baseline import tax on all countries and higher tariffs for those with trade surpluses with the United States. Economists and business owners warn of potential economic fallout.
Speaking from the White House, Trump declared a new economic era. “This will be indeed the golden age of America,” he said. “Our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike.”
The tariff breakdown includes a 34% import tax on goods from China, 20% on the European Union, 25% on South Korea, 24% on Japan, and 32% on Taiwan.
Markets React and Economists Warn of Rising Prices
Trump’s announcement came after markets closed, but the impact hit futures quickly. Dow futures dropped nearly 1,000 points, while S&P and Nasdaq futures also declined sharply.
Economists in Massachusetts predict a broad ripple effect that will increase the cost of living for most Americans. “I just want to emphasize that everything is going to go up,” said Tarek Hassan, an economics professor at Boston University.
Retailers like Target saw stock values fall in after-hours trading, as investors braced for reduced profits tied to higher import costs.
“These tariffs are across the board,” said Diane Swonk, chief economist at KPMG. “They are going to touch everything—from going to the grocery store to going out to restaurants, to even having to go to places like the movie theater.”
Hassan explained the mechanics: “Target wants to import air mattresses or whatever goods they want to import, and they have to pay a surcharge. So if Target pays a surcharge, they have to pass those prices through.”
Even domestically made products could become more expensive due to the global supply chain. “Even if a window is made in the U.S., you need parts from abroad,” Hassan said. “We’re the richest country in the world; there is no sense in which the rest of the world has been taking advantage of us all this time.”
Wine Industry Feels the Strain
One industry already feeling the impact is wine. The universal 10% tariff and higher rates on European goods are raising concerns about the future of imported wine in the U.S.
“At every step, there’s going to be a significant increase in costs,” said Jessica Sculley, director of the Commonwealth Wine School. Sculley noted that consumers may stop buying wine if prices rise too much.
Tariffs Affect Relationships and Business Decisions
After a recent work trip to Italy, Sculley said international winemakers are already considering alternatives to the U.S. “They were all concerned. They were all sad, and they were all looking for other markets, which means they might not want to do business with us anymore,” she said.
She added that wine lovers may see fewer choices in the future, as foreign producers shift focus to more stable markets, leaving shelves emptier and options more limited than ever before.
