Democratic governors lash out as tariffs take effect

The economic sanctions on imports of goods, which the White House argues are necessary to pressure the two countries into doing more to restrict the flow of drugs and illegal immigrants into the United States, went into effect on Tuesday. Canadian energy products are subject to 10% import duties under the new policies that double the Chinese tariffs implemented last month. 

Andy Beshear

Kentucky’s governor called the tariffs “the Trump tax” and warned they would raise the price of lumber, making it more difficult to buy a home and everyday items such as food and gas. 

“Sadly, last night, President Trump initiated tariffs on Canada and Mexico, and it’s going to make our lives as the American people that much more difficult and everything that much more expensive,” Gov. Andy Beshear (D-KY) said in a video statement Tuesday. “And let me tell you, this decision was made solely by President Trump.”

“It’s a bad decision, and they can ultimately undo this decision,” he continued. 

Business leaders in the state have warned that the sanctions could harm many industries, including the multi-billion dollar bourbon business.

“We’re very concerned about the tariffs that have been announced,” Sarah Davasher-Wisdom, president and CEO of Greater Louisville Inc., told Spectrum News. “We expect the impacts to be felt primarily in agriculture, energy, manufacturing, and bourbon as well. That was one of the industries that was called out in the tariffs, and that’s a concern because the bourbon industry is a $9 billion impact in Kentucky.”

Canadian Prime Minister Justin Trudeau said his country would retaliate against tariffs by boycotting American goods such as “beer, wine and bourbon.” Following his comments, Beshear warned that workers in “the bottling plants [and] people in the cooperages” would be harmed.

Kentucky exported $43 million in whiskey to Canada in 2023. 

Kathy Hochul

In a statement Tuesday, New York’s governor expressed concern that tariffs would hurt her state’s agriculture base and farms, which grossed $8.5 billion in income in 2022. Gov. Kathy Hochul (D-NY) also convened a roundtable with farmers in Albany to discuss the effects the tariffs could have on the industry. 

“Our trading partners like Canada and Mexico — particularly Canada, though. I mean, we’re right on the border, right on the border. And there’s such an easy flow of commerce back and forth, and we rely on this — it’s so important to all of us,” Hochul told farmers during the meeting Tuesday morning. “When I think about all the stress that’s on you all day long already, and now you have to factor in, ‘What are these tariffs going to do to my business? How will I overcome this?’” 

Katie Hobbs

Arizona’s governor chimed in on Tuesday, arguing the tariffs represented “a tax on families and businesses that threaten to make groceries and gas more expensive while harming critical Arizona industries.”

Gov. Katie Hobbs (D-AZ) also highlighted a press release her office sent out in early February detailing the economic effect Trump’s sanctions, particularly on Mexico, could have on Arizona’s economy.

Mexico is Arizona’s largest trading partner, with imports from the country to the state hovering around $11 billion. 

“Mexico steadily ranks as the largest exporter and importer for Arizona, with nearly $20 billion in trade annually and large contributions to vital industries including electronics, transportation, machinery and agriculture,” Chris Camacho, the president of the Greater Phoenix Economic Council, wrote in Hobbs’s release. “Thousands of jobs in Arizona are supported by exports to Mexico, while Mexican companies employ thousands more in our state. International trade has tremendous gravity in our market, and free and fair trade is integral to the economic vitality of Arizona.” 

Gretchen Whitmer

Michigan’s governor has long warned that the tariffs could cause widespread damage to the state’s massive auto industry. Gov. Gretchen Whitmer (D-MI) reiterated those concerns after the White House announced on Feb. 27 that the tariffs would go forward on March 4. 

“25% tariffs on everything would slow down construction, shutter small businesses, lead to layoffs in the auto industry, and cost Michigan families an extra $1,200 a year at the store and at the pump—because companies will pass their higher costs onto the consumer,” she said on X.

Detroit and Canada are separated only by the Ambassador Bridge, the busiest international crossing in North America. Hundreds of millions of dollars worth of goods cross the bridge between Detroit and Windsor, the automotive capitals of their respective countries. 

General Motors, one of the largest auto manufacturers in Detroit and the U.S., has downplayed fears about the tariffs. CEO Mary Barra announced in February that her company is prepared for the economic sanctions and expressed confidence GM could mitigate up to 50% of the tariffs.

Ford CEO Jim Farley has signaled deeper concerns, saying that if tariffs are protracted, they would have “a huge impact on our industry with billions of dollars of industry profits wiped out and adverse effect on the U.S. jobs as well as the entire value system in our industry.” 

Maura Healey

Massachusetts’s governor warned Monday that the tariffs, particularly on Canada, would cause energy bills to rise. 

“A lot of our energy here comes from Canada,” Gov. Maura Healey (D-MA) said in a video posted to X Monday. “These tariffs are going to cause our energy bills to skyrocket by over a billion dollars in Massachusetts alone. Donald Trump is jacking up the price of gas and oil by 20 cents a gallon. That’s going to hurt you every time you pay at the pump or go to heat your house.” 

Healey believes the Canadian tariffs could raise electricity prices in her state by as much as $200 million a year — between 5% and 10% of electricity consumed in New England is imported from Canada, according to the governor’s office.

Jared Polis

In a statement Monday, Gov. Jared Polis (D-CO) similarly characterized the tariffs as a “horrible sales tax” and promised they would raise “the price of groceries, clothes, homes, technology, cars, and everyday items Americans rely on, hurting North American competitiveness.”

The Canadian tariffs on crude oil will likely affect energy prices, as Colorado’s only oil refinery is operated by a Canadian-based company. Suncor Energy accounts for roughly 40% of the state’s market for refined petroleum products, per a local news outlet. 

Trump has expressed confidence that the tariffs will only cause “some temporary, short-term disruption.”

“People will understand,” he told reporters at the White House in January as he previewed the economic sanctions.

Trump has also expressed concern that the U.S. is outsourcing jobs to foreign countries at the cost of domestic economic productivity, which belies the president’s “America First” agenda. 

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The U.S. ran a $171.8 billion trade deficit with Mexico and a $63.3 billion deficit with Canada last year.  

The president has already credited the threat of tariffs for spurring more economic investment in the U.S., including Apple’s move to pour $500 million into factories on the mainland and Honda’s decision to move production of its electric Civic model from Mexico to Indiana.