Latest Tariffs Add $3.2B to State’s Import Costs

The Trump administration’s revised tariff policies will hike the cost of goods imported into Connecticut by at least $3.16 billion—a 14% increase over 2024.

Imports from most countries now face 10% levies, after President Donald Trump’s April 9 announcement of a 90-day pause on the so-called reciprocal tariffs he imposed a week earlier.

Chinese imports, however, are now tariffed at 145%, as the White House continued to increase levies on the major U.S. trading partner in response to its retaliatory tariffs on American goods.

Imports from Canada and Mexico that are not covered under the 2018 U.S.-Mexico-Canada Agreement are tariffed at 25%, with 10% levies on energy and potash from those two countries.

On April 11, the Trump administration published a rule temporarily exempting imported smartphones, computers, semiconductors, and other electronics from tariffs.

The U.S. will also continue imposing the 25% tariff on all steel and aluminum and automobile imports that took effect last month.

Manufacturing Impact

Connecticut’s critical manufacturing sector will likely feel the brunt of the administration’s trade policies, both from the increased cost of imported materials and the expected impact on commodity exports.

The state imported $22.74 billion in goods in 2024, with manufacturing inputs such as aerospace components, equipment, primary production metals, petroleum and coal products, and fabricated metal products representing about two-thirds of all shipments.

Connecticut manufacturers face an estimated $600 million in tariffs on Canadian and Mexican imported steel and aluminum, $1 billion on imported Chinese manufacturing inputs, and $500 million on inputs from other countries—at least $2.1 billion in total.

Country	Imports	Exports	Total
Canada	$5.74 billion	$2.3 billion	$8.04 billion
Mexico	$3.6 billion	$1.67 billion	$5.28 billion
Germany	$1.59 billion	$1.79 billion	$3.39 billion
China	$1.34 billion	$1.46 billion	$2.8 billion
Netherlands	$1.38 billion	$1.24 billion	$2.6 billion
United Kingdom	$885 million	$1.03 billion	$1.92 billion
France	$435 million	$831 million	$1.27 billion
Singapore	$414 million	$738 million	$1.15 billion
Italy	$299 million	$584 million	$883 million
Brazil	$357 million	$409 million	$766 million

Canada is Connecticut’s largest trading partner. Source: U.S. International Trade Administration.

“That’s an astonishing hit for manufacturers, who already face some of the highest operating costs in the country because of Connecticut’s high taxes and high energy and labor costs,” said CBIA president and CEO Chris DiPentima.

Canada is Connecticut’s largest trading partner, accounting for more than 25% of the state’s imports and 13% of exports, followed by Mexico, Germany, and China.

Imports from China have declined $954 million (-41.5%) since the 2018 signing of the USMCA, while Canadian imports increased 60% during that period and Mexican imports grew 44%.

Export Threats

While most countries have yet to impose retaliatory measures on U.S. exports, the 84% to 125% counter tariffs that China announced April 11 will hike the cost of Connecticut goods shipped to that country by at least $1.2 billion.

Connecticut commodity exports jumped 9.7% to $17.38 billion in 2024, driven by growth in a number of key markets that the Trump administration is now targeting with tariffs.

Commodity exports represent 5.9% of Connecticut’s $296.6 billion economy, with the export sector supporting more than 50,000 jobs.

Companies in the Hartford-West Hartford-East Hartford area exported $11 billion in goods, followed by Bridgeport-Stamford-Danbury ($5.5 billion), New Haven ($2.3 billion), Norwich-New London-Willimantic ($261.4 million), and Waterbury-Shelton ($1.8 billion).

Ongoing uncertainty and turmoil surrounding #trade and #tariffs is “not a good thing for businesses,” CBIA's @ChrisDipentima tells @1490WGCH's Tony Savino. “They can’t plan, they can’t really coordinate, they can’t really move forward 100% with their strategy." #Connecticut pic.twitter.com/cNney1LpUM

— CBIA (@CBIANews) April 10, 2025

Transportation equipment—primarily aerospace components—accounted for 36% of all international shipments last year, followed by non-electrical machinery (19%), computer and electronic parts (7%), electrical equipment (7%), and fabricated metal products (6%).

“Ultimately, these tariffs will lead to higher costs for businesses and consumers and fewer exports and market opportunities for Connecticut companies,” DiPentima said.

“The uncertainty and turmoil at the federal level, where things are changing on a daily basis, is not a good thing for businesses.

“They can’t plan, they can’t really coordinate, they can’t really move forward 100% with their strategies when they don’t know what the environment is going to be on the national or local level.”