New Jersey leaders warn of job losses at Port Newark due to potential tariffs

The New Jersey House of Representatives convened on December 16, 2024, for a meeting focused on Assembly Oversight, Reform, and Federal Relations. The session primarily addressed the implications of potential tariffs on the state's economy, particularly concerning the impact on port workers and manufacturers.

The meeting began with a discussion led by a professor who highlighted the challenges faced by port workers, particularly at the Port of Newark. He noted that technological advancements and potential trade volume reductions could significantly affect employment levels. A hypothetical scenario was presented where a 20% drop in trade volume could lead to job losses not only at the port but also among workers involved in transporting goods to and from the facility. The professor emphasized that while technological changes are a factor, the imposition of tariffs could exacerbate these challenges, leading to broader economic repercussions across various ports in the country.

Following this, Chris Emmaholtz, Chief Government Affairs Officer of the New Jersey Business and Industry Association (NJBIA), provided testimony on the potential negative effects of tariffs on New Jersey's economy. He underscored the importance of free trade for the state's logistics industry, which is vital for economic health. Emmaholtz pointed out that New Jersey exported approximately $43.3 billion worth of products in the previous year, with a significant portion of these exports going to Canada. He warned that retaliatory tariffs from other countries could threaten local jobs and businesses reliant on exports.

Emmaholtz also discussed the broader economic implications of tariffs, including rising costs and inflation. He noted that businesses in New Jersey are already grappling with high property taxes, health insurance costs, and corporate taxes, which could be further strained by the introduction of tariffs. He suggested that while targeted tariffs might be beneficial in some cases, broad tariffs could lead to significant economic disruption.

Peter Conley, CEO of the New Jersey Manufacturing Extension Program, followed with remarks emphasizing the need for strategies to support small and medium manufacturers in the face of potential tariff-related challenges. He echoed the concerns raised about the impact of tariffs on competitiveness and suggested that state-level initiatives could help mitigate these risks.

The meeting concluded with a call for the state legislature to assess the potential impacts of tariffs on New Jersey's economy and to consider proactive measures to support affected industries. The discussions highlighted the interconnectedness of trade policies and local economic health, underscoring the need for careful consideration of any federal tariff actions. The committee plans to continue exploring these issues in future hearings.