Tariffs expected to drive up energy prices in New England

In Boston, new tariffs on Canadian and Mexican goods have been announced by the Trump administration, heightening concerns about potential energy price increases for New England residents. The tariffs include a notable 10% tax on Canadian energy resources, which significantly impacts the region's gas and electricity markets due to its reliance on Canadian imports. Approximately 80% of New England's gas and diesel is sourced from Canada, with a large portion derived from the Irving refinery in New Brunswick. Furthermore, around 90% of jet fuel for Logan Airport comes from Canadian supplies. Economists, including Christopher Knittel from MIT, are already predicting that consumers will feel the effects almost immediately, particularly when it comes to fuel prices at gas stations. Knittel expressed that consumers are likely to bear more than 75% of the tariff tax burden. The situation is further complicated for electricity prices, which are set over multi-month periods. As a result, there may be a lag between the implementation of the tariffs and the higher electricity bills residents will face. Dan Dolan, President of the New England Power Generators Association, explained that while energy prices are locked in, raising costs may not be immediately reflected in customers' bills, leading to a wave of discontent when the tariffs are eventually felt across the board. In conclusion, as tariffs go into effect, New Englanders should brace themselves for a rise in energy prices, particularly at the pump and over time in electricity bills.