The New Jersey Business & Industry Association (NJBIA) presented testimony to an Assembly committee on Monday, addressing the potential economic impacts of proposed tariffs by the incoming Trump administration. The NJBIA highlighted both positive and negative effects that these tariffs could have on New Jersey businesses and offered recommendations for state lawmakers to prepare.
Christopher Emigholz, NJBIA's Chief Government Affairs Officer, stated in his prepared remarks for the Assembly Oversight, Reform and Federal Relations Committee that while tariffs might boost domestic manufacturing, they also pose risks such as disrupting free trade and causing inflation in both the supply chain and consumer markets.
“Imports are a critical part of our supply chain, and exports are an important money-maker for New Jersey businesses,” Emigholz said. He noted that New Jersey generated $43.3 billion in exports in 2023 with around 20,000 companies involved. “Of those exporters, 91% were small or mid-sized manufacturers, and trade supports over 20% of all New Jersey jobs,” he added. Emigholz expressed concern that retaliatory tariffs could threaten these exports.
Emigholz emphasized the complexity of tariff policy and advocated for a "surgical approach" targeting only foreign products also made domestically. He called for a Miscellaneous Tariff Bill (MTB) at the federal level to reduce or suspend tariffs on products not produced domestically. “There currently is no MTB as it expired back in 2020," he said. "Passing the MTB through 2026 and beyond will boost U.S. competitiveness.”
To prepare for new tariffs on imports expected in 2025, Emigholz recommended several actions for state lawmakers:
1. Assess exposure to critical tariff-impacted imports.
2. Provide direct support to negatively impacted manufacturers.
3. Enhance education and resources for exporters.
4. Support onshoring of key products within New Jersey.
5. Encourage federal renewal of the MTB.
6. Enact pro-growth tax policies.
Emigholz urged planning for potential tariffs against countries like Canada, Mexico, and China by finding alternative sources or supporting domestic production where possible.
