New Yorkers would feel the effect of tariffs on Canadian goods first in their energy prices, a top Canadian diplomat said Tuesday during a visit to Albany.
Tom Clark, the Canadian consul general in New York, met with state lawmakers on the eve of a potential trade war, reminding legislators of the state’s massive trade relationship with its northern neighbor and warning them about the potential impact if tariffs go into effect next month.
President Donald Trump over the weekend ordered a 25% duty on all goods and services imported into the United States from Canada and Mexico, with a lower 10% tariff on Canadian energy and products from China. As markets dropped in the hours before they were supposed to take effect, the North American governments announced a 30-day détente.
Despite the pause and the lower tariff for energy, Clark warned of higher costs for both fossil fuel and green energy consumers.
New Yorkers import more than $2 billion of Canadian oil, natural gas and electricity every year, according to a fact sheet from the Canadian government. A new transmission project, the Champlain-Hudson Power Express, will route Canadian hydropower into New York City when it comes online in the spring of 2026. That project’s importance has only increased since former Gov. Andrew Cuomo forced the closure of the Indian Point nuclear plant in 2021, making the city reliant on more volatile fossil fuel plants to keep the lights on.
“It's going to be the biggest supplier of electrical power into New York,” Clark said. “If we decided that we were going to tariff energy or put an export tax or export controls on energy going to the United States, then yes, it would certainly become more expensive.”
That isn’t happening so far, but Clark said the Canadian government would respond to American-imposed tariffs. While they remain paused, Canadian officials have offered concessions to Trump’s demands in order to delay a trade war. Prime Minister Justin Trudeau reiterated his commitment to spend $1.3 billion on border security funding on Monday, and he vowed to appoint a “fentanyl czar” to stem the flow of the illicit drug into the United States.
Clark said he’s not certain how big Canada’s role in the fentanyl crisis is, and that the illicit substance flows over the border in both directions. Less than 1% of the fentanyl seized entering the United States was crossing from the north. And Trump has made clear that he intends to implement tariffs if he is not satisfied with Canada’s response.
In New York, that could raise prices across the almost $43 billion of goods that flow across the border each year, according to both Hochul and the Canadian government. That included $22.8 billion of goods imported into the state in 2023, led by jewelry and precious gems, aluminum and automobiles, which would all become more expensive if import duties were added, economists say.
Similarly, Clark said tariffs could throw into question the $19.5 billion worth of goods New York state exports to Canada.
”We're glad that for the average New Yorker they're not going to be hurt in the way that they could have been hurt if these tariffs had gone ahead,” he said. “What we need to see is the threat of tariffs removed entirely.”
New York officials' reactions to Trump's trade actions mirror the national partisan split. State Senate Minority Leader Rob Ortt, a Republican from Niagara County, said he supported Trump’s goal of tightening the border. He called the tariffs a negotiating tactic.
”Whatever pain there may be early on, I think will be worth it in the end when we have better trade deals, better economic policy and we're respected again,” he said Monday.
Democrats like Hochul said the economic disruptions were wholly unnecessary.
“Canada and New York state are really– it's like all part of one region, and we have a lot of trade between us, and it's critically important for our farmers, and our manufacturers, and all the areas we produce materials that Canada needs that we get that across the border with ease,” the governor said Sunday on MSNBC.
Clark called Hochul a good partner and thanked her for her sentiments. He had a tart reply for Republicans talking about negotiation.
“ Everybody says, well, this is a negotiating tool, and I say, a negotiating tool for what?” Clark said. “What is it that you want?”