[Source / Observer Network, Ruan Jiaqi]

"New Yorkers have been hit hard," Governor Kathy Hochul of New York State said when talking about President Trump's tariff policies.

According to Bloomberg reports, on Thursday (the 3rd), during an interview with Bloomberg Television, Hochul complained that Trump's large-scale promotion of tariff measures has had an impact on the economy of New York State. Due to a sharp drop in the number of Canadian visitors, cross-border shopping activities have decreased, leading to a decline in sales tax revenue for the state.

Although the latest round of so-called "reciprocal tariffs" did not include Canada, after Trump repeatedly threatened to impose a 25% tariff on Canada, denied the country any preferential exemptions in steel and aluminum tariffs, and frequently boasted about "annexing Canada," it caused widespread anger in Canada and led to Canadian citizens boycotting American goods and tourism activities.

Hochul told US media that the border between New York State and Canada is 450 miles long, and their trade volume is worth $50 billion, making New York particularly sensitive to disruptions in cross-border trade.

"The impact is immediate. This is the largest tax increase in American history," she pointed out. The negative effects of Trump's tariff actions can be seen from Wall Street to places like Buffalo in upstate New York. In these areas, Canadian tourists often contribute to local economic development through retail spending and watching sports events.

"We have seen this happen – the number of bookings by Canadian tourists traveling to New York State has dropped, they are a major source of tourism income for New York City and my hometown, Buffalo. So, first and foremost, sales tax revenue, which has already started to decline," Hochul said.

Hochul also mentioned that some dairy farmers told her that because of Canada's retaliatory measures triggered by Trump's tariffs, he now needs to spend an extra $10,000 per month purchasing fertilizers and other products from Canada. "It must be said, from Wall Street to farmers to small towns, from the real economy to financial markets, this brings catastrophic impacts, and New Yorkers are currently bearing this impact."

Bloomberg TV video screenshot

US media cited a report from New York State Comptroller last month, stating that industries such as healthcare, retail, and manufacturing may be more affected by tariffs than others. The report found that the cost of goods used by these industries may rise. Bars and restaurants with slim profits will also be affected.

Hochul said that to some extent, she believes that tariffs will eventually bring manufacturing jobs back to industrial centers like Syracuse and Rochester.

"There might be a glimmer of hope." Hochul turned sarcastic, saying, "But I don't know how old I'll be by the time all this happens."

"Starting to build factories now, I don't know what they plan to do. What I know is that people were promised lower living costs on inauguration day. But guess what? That number is rising."

Hochul said her administration is studying how to use state resources to help alleviate residents' economic burdens and stabilize the economy.

"I've gathered the smartest economists in the country to help us brainstorm. It's a desperate mistake. It didn't have to be this way," she said. "You can use tariffs, or moderately use some tools as negotiation tools, but (now) it's just too extreme."

On April 2nd, Trump announced a 10% "minimum benchmark tariff" on trade partners and higher tariffs on certain trading partners. The tariff list published on that day did not include Canada. However, the previous policies of imposing a 25% tariff on steel and aluminum and some Canadian goods, a 10% tariff on Canadian energy products, and a 25% tariff on all imported cars from the US remain effective, with the latter taking effect on April 2nd.

On the 2nd in Ottawa, Prime Minister Karney responded to the media, stating that Trump's tariff policies "fundamentally changed the international trade system." Since the US still imposes tariffs on Canada's steel, aluminum, automobiles, semiconductors, timber, etc., Canada will respond accordingly. He reiterated that they would try to minimize the difficulties caused by US tariffs to Canadians.

On the same day, a dramatic scene occurred in the US Senate: due to four Republican senators defecting, the Senate passed a resolution initiated by Democrats to cancel the 25% tariff on Canadian goods with a vote of 51 to 48.

However, according to The Hill, this resolution does not have legal effect. The Republican leader of the Senate opposition stated that the resolution will not be voted on in the Republican-controlled House of Representatives, and they expect that the resolution will never reach Trump's desk.

In addition, according to Reuters and other reports, on Thursday (the 3rd), Prime Minister Karney announced that Canada will follow the US approach and impose a 25% tariff on all US-imported vehicles not included in the US-Mexico-Canada Agreement, excluding automotive parts. A government spokesperson revealed that this new measure will apply to imports worth CAD 35.6 billion ($25.3 billion).

Furthermore, Karney stated that previously announced Canadian tariffs on US goods will continue to be implemented. In the past month, Canada has imposed two rounds of tariffs on US imports totaling CAD 59.8 billion.

Karney said, "For 80 years, the US has worn the cloak of a global economic leader, building alliances based on trust and respect, advocating for free and open trade in goods and services. All of this has ended; it is a tragedy."

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