Boston - Governor Maura Healey, Lieutenant Governor Kim Driscoll and Economic Development Secretary Yvonne Hao today convened business leaders for a roundtable discussion about the impact of President Donald Trump’s tariffs on businesses and the cost of living in Massachusetts. Attendees included the leaders of prominent organizations representing hundreds of businesses of all sizes and spanning all industries across the state, as well as representatives from the manufacturing, finance and contracting industries.

Last week, President Trump announced a broad set of new tariffs on U.S. imports would go into effect on April 9. These tariffs would impact almost every country with a baseline tariff of 10 percent on imports. In addition, the policy included country-specific “reciprocal” tariff rates on about 90 countries that the White House considers to be “worst offenders” in terms of trade deficits. These new tariffs would build on tariff policies announced in February and March on Canadian and Mexican imports, as well as aluminum and steel imports. Experts estimate that the new tariff policy will effectively raise the U.S. tariff rate to its highest rate since at least the 1930s, when the Smoot-Hawley Act was implemented.  

In the middle of the roundtable, President Trump announced that he was pausing most of these new tariffs for 90 days.

“President Trump needs to stop holding our economy hostage and gambling with people’s livelihoods. We can’t continue with this chaos where families can’t budget, businesses can’t invest, workers can’t plan retirements,” said Governor Healey. “In Massachusetts, we are going to do what we always do – come together and lead. That’s what this convening was all about. But our businesses and the people of this country need a President focused on lowering costs and growing this economy. Everything President Trump has done has been the exact opposite. Enough is enough.”  

“President Trump says he was elected to make life easier and more affordable for people. The way to do that is to listen to our business leaders and work with our allies – not pick fights that are going to raise costs for everyone,” said Lieutenant Governor Kim Driscoll. “We’re already seeing the negative impacts even before the tariffs are in full effect. People’s 401Ks are tanking, business confidence is plummeting, and chances of increased inflation and a recession are rising. President Trump needs to reverse course.”

“We support bringing more manufacturing jobs back to Massachusetts and the United States more broadly and also want to ensure a fair playing field for companies in our state to compete globally. Despite today’s developments, we’ve already witnessed the harm and disruption caused by these tariffs,” said Economic Development Secretary Yvonne Hao. “We will continue to focus on doing everything we can to help Massachusetts residents and companies navigate this challenging time. Today’s convening will be leveraged as we develop a strategy and approach to navigate the next 90 days and beyond so that our state can continue to lead and win.”

During the roundtable, attendees were briefed by two experts on tariffs and domestic manufacturing. Attendees then shared with Governor Healey and Secretary Hao how they have already seen the threat of tariffs hurt their businesses and increase costs, and detailed the impact they expect as this new round of tariffs goes into effect.  

The tariffs are expected to increase the cost of nearly everything that the American people and businesses rely on, such as cars, groceries, housing construction, energy and more. Massachusetts businesses export some $77 billion worth of goods each year to 210 markets globally, which includes products like semiconductor manufacturing equipment, vaccines and medical/scientific instruments, as well as tens of billions of dollars in services. These exports support one of five jobs throughout the state. 

Already, with only some tariffs implemented and the looming threat of many more, the American economy is being negatively impacted. The S&P 500 and Dow have been down, the Federal Reserve slashed its expected 2025 GDP growth rate, retail sales are stagnating, and consumer and business confidence are down while odds of a recession and increased inflation are up.   

Statements from business community

JD Chesloff, President & CEO, Massachusetts Business Roundtable: 
“National tariff policy is causing uncertainty and disruption to Massachusetts employers, impacting decisions about investment, hiring, and long-term planning. The probability of cost increases, global collaboration being upended, and the potential impact on consumer demand all pose a threat to the state’s economy. In response, employers are gathering data, engaging in scenario planning, and trying to remain nimble so that they can minimize the impact on their operations and their employees. They are also engaging in important conversations like the one hosted by the Healey-Driscoll Administration today to gauge the impact on a variety of industries across the Commonwealth, on our economy and economic development strategy, and to develop a path forward. The Massachusetts Business Roundtable is grateful to Governor Healey, Lt. Governor Driscoll, and Secretary Hao for convening this conversation and is pleased to partner with our public leaders to gather information and develop a plan to ensure the state’s businesses, workers, and economy continue to thrive.”

Jon B. Hurst, President & CEO, Retailers Association of Massachusetts: 

“Fair and free trade is very important, but getting there needs to be done in a way which is not damaging to our consumers and small businesses. High tariffs are in effect a federal sales tax on consumers, and that’s costly and regressive. We urge a quick and balanced resolution to fair trade which will lower costs and protect our local and national economic growth.” 

Ben Linville-Engler, Deputy Director and Chief Investment Strategist, Massachusetts Technology Collaborative (MassTech):

“Manufacturing continues to be a cornerstone of the Massachusetts economy. With a strong commercial and defense manufacturing base, we are home to both small and large manufacturers that are advancing next-generation production and leading the development of AI, robotics and cybersecurity technologies.” 

Nicole Obi, President & CEO, Black Economic Council of Massachusetts:

"Black and brown businesses are already vulnerable to economic headwinds, and tariffs magnify their exposure - stagnating growth, ultimately threatening their very existence. I'm grateful that the Healey-Driscoll Administration convened us here today and I'm optimistic that the Commonwealth can find ways to band together to help blunt the impacts of these Federal tariff policies." 

James E. Rooney, President & CEO, Greater Boston Chamber of Commerce: 
“I thank Governor Healey, Secretary Hao, and the Administration for leading this important conversation about the impacts of tariffs on Massachusetts’s consumers and businesses. The broad, indiscriminate, and unpredictable use of tariffs will have profound impacts on the Commonwealth’s employers and residents at a time when affordability is an increasing concern, and the ongoing partnership with our state policymakers is essential as we navigate these new circumstances.”

Eneida Román, President & CEO, We Are ALX (formerly Amplify LatinX):  
“Latino-owned businesses are the backbone of many of our communities and a key driver of Massachusetts’ economy—they’re builders, designers, caregivers, creators, and much more. There’s no doubt these tariffs would hit small businesses the hardest, especially those already navigating systemic barriers. I commend Governor Healey for bringing us to the table. I look forward to lifting up the voices of our entrepreneurs who need real, targeted support to keep growing, hiring, and thriving in Massachusetts—and to continuing our advocacy for solutions that move them forward.”

Brooke Thomson, President & CEO, Associated Industries of Massachusetts: 
“The wave of tariffs, reciprocal tariffs and retaliatory tariffs announced during the past weeks have left AIM member businesses uncertain and increasingly wary. One paper company expects that its raw-material costs will increase by $4-$5 million a year, decimating its business. An industrial contractor lost a $1 million contract with fewer than 48 hours’ notice. And a manufacturer saw its cost for half a million dollars’ worth of machinery go up 20 percent while the products were being shipped. These stories demonstrate the immediate, negative impact these tariffs are having on Massachusetts businesses. No wonder that since the levies were announced, the AIM Business Confidence Index has dropped dramatically to its lowest level since the pandemic.”