NJBIA told an Assembly committee on Monday the incoming Trump administration’s proposed tariffs on imports could have positive and negative economic consequences for New Jersey businesses and outlined what state lawmakers can do to prepare.
In prepared testimony for the Assembly Oversight, Reform and Federal Relations Committee meeting, NJBIA Chief Government Affairs Officer Christopher Emigholz noted that while tariffs can boost domestic manufacturing, they can also disrupt free trade and cause inflation both in the manufacturing supply chain and for consumers.
“Imports are a critical part of our supply chain, and exports are an important money-maker for New Jersey businesses,” Emigholz said. “New Jersey generated $43.3 billion in exports in 2023 with approximately 20,000 New Jersey companies participating in that.
“Of those exporters, 91% were small or mid-sized manufacturers, and trade supports over 20% of all New Jersey jobs,” Emigholz said. “Exports are even more significant to the New Jersey economy than the average state, and our exports could be threatened by imposing tariffs on imports because of retaliatory tariffs.”
Tariff policy is complicated and, therefore, should be implemented with a “surgical approach” focusing only on foreign products that are also made in the U.S., Emigholz said.
“That is why our nation needs a Miscellaneous Tariff Bill (MTB) on the federal level to reduce or suspend tariffs for particular products that cannot be made anywhere except for a foreign nation,” Emigholz said. “There currently is no MTB as it expired back in 2020, but to help tariffs be as supportive for manufacturers as possible, our nation needs one. Passing the MTB through 2026 and beyond will boost U.S. competitiveness.”
Emigholz made a series of recommendation to state lawmakers to prepare for the implementation of new tariffs on foreign imported products in 2025:
- Assess Exposure to Critical Tariff-Impacted Imports in New Jersey. New Jersey state government agencies could plan for what may happen if tariffs are imposed on Canada, Mexico, and China, as President-elect Trump has indicated. The state could help find domestic sources of goods that are critical to supply chains or other countries not currently targeted in tariff discussions that supply these goods.
- Direct Support of Negatively Impacted Manufacturers. Create a grant or tax incentive program to support manufacturers hardest hit by potential tariffs on products that cannot be found in our nation.
- Education & Resources for New Jersey Manufacturers. Assess whether businesses are aware of existing federal and state programs designed to help them export their products to other countries and do more outreach to get these programs on their radar.
- Support Onshoring of Certain Products in New Jersey. The state can pursue workforce development, infrastructure investments, tax incentives and other policies to support the return of certain manufacturing that is critical to New Jersey supply chains but currently in other nations.
- Encourage New Jersey’s Congressional Delegation to Support Renewal of the Federal Miscellaneous Tariff Bill (MTB).
- Enact Pro-Growth Tax Policies. Pursuing pro-growth tax policies, including lowering the CBT tax rate, and exploring other competitive tax policies such as more advantageous R&D tax incentives, and greater accelerated depreciation and interest deductibility to support capital investments.
Go here to read Emigholz’s entire testimony.
