New England dodges a bullet as Trump grants Mexico and Canada a tariff reprieve

?? Welcome to Trendlines. The secret password is "The Bean Method."

I am Boston Globe financial columnist Larry Edelman, and I am back after a vacation break. Today, I try to keep up with the latest on President Trump's tariff showdown with Canada, Mexico, and China.

Plus: a potential record price for a priceless violin.

Trendlines is my twice-weekly newsletter for Boston Globe Media . Click the subscribe button to keep on top of business and the economy in the region and beyond.

Trade truce

It wasn’t just Mexico and Canada that earned temporary reprieves from steep tariffs President Trump planned to impose on their exports Tuesday. New England consumers and businesses also caught a break.

Trump's agreements with the country's two largest trading partners spared the region from immediate economic strain. The tariffs — 25 percent on most goods and 10 percent on Canadian energy — were set to take effect Tuesday but have been postponed for 30 days following agreements by the two allies to address border security and drug trafficking.

(A new 10 percent tariff on Chinese goods took effect on Tuesday, and China immediately retaliated with surcharges on selected US goods.)

Local business leaders and politicians had warned of severe economic consequences if the tariffs against Canada and Mexico were implemented.

James (Jim) T. Brett , CEO of the New England Council, highlighted the widespread impact on the region's economy, while Massachusetts Governor Maura Healey criticized the move, saying it would harm American families and cost jobs.

Trump, aiming to fulfill campaign promises, is using tariffs to pressure trading partners into policy changes and to protect American industries. However, economists caution that this strategy could lead to higher consumer prices, retaliatory tariffs, and economic uncertainty.

??? Energy

New England, heavily reliant on imported energy, would have faced increased heating costs, particularly for oil and propane users. Many households depend on heating oil from Irving Oil’s refinery in New Brunswick. New England imports some electricity from Canada, primarily from hydroelectric facilities in Quebec, but the impact of the tariffs on electricity prices would be much more muted.

?? Housing and Construction

Tariffs on Canadian softwood lumber and gypsum — key materials in homebuilding — would escalate construction costs in Massachusetts. Homebuilders already contend with a 14.5 percent tariff on lumber, and additional duties would exacerbate housing affordability issues. Industry experts stress that local supply is insufficient, making imports essential.

?? Food Prices

Grocery and restaurant prices were expected to rise as many food products are imported. With 20 percent of Massachusetts families already facing food insecurity, organizations like Project Bread fear worsening conditions. Restaurant owners anticipated menu price increases of 5–10 percent if tariffs persisted.

?? Autos

Car prices were also set to increase due to higher costs for imported components. Massachusetts auto dealers, with about 70 days’ worth of inventory, warned that once pre-tariff vehicles were sold, prices would climb. Some consumers preemptively purchased cars and appliances in anticipation of price hikes.

?? Economic Uncertainty

Stocks initially fell on tariff concerns before recovering after the Mexico-Canada agreements. However, ongoing trade tensions remain. Trump signaled potential tariffs on the European Union, adding to business uncertainty. While the temporary reprieve provided relief, the risk of renewed tariffs looms, leaving businesses and consumers on edge.

?? Trending

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Health Care: More doctors are quitting medicine, citing burnout and workplace issues.

?? The Closer

A 1714 violin made by the famed Antonio Stradivari might become the most expensive musical instrument ever sold when it goes up for auction on Friday at Sotheby’s in New York, the Associated Press reports.

The auction house is estimating the value of the “Joachim-Ma Stradivarius” at $12 million to $18 million. If it sells at the top end of that range, it could best the $15.9 million paid in 2011 for another Stradivarius, the “Lady Blunt,” made in 1721. . . .

Mari-Claudia Jimenez, Sotheby’s Americas president and head of global business, said Stradivari made the violin during his “Golden Period,” which began around 1700 and was marked by an improvement in his craftmanship.

It’s named for two of its famed owners — violin virtuosos Joseph Joachim of Hungary, who lived from 1831 to 1907, and Si-Hon Ma, who was born in China in 1926, moved to the US in 1948 and died 2009.

Ma acquired the violin in 1969 and his estate gifted it to the New England Conservatory in Boston after his death. The conservatory will use the proceeds from the sale to fund scholarships.

Thanks for reading. Trendlines will return later this week.