MBTA in the Crosshairs of Tariff Battle Between Trump and China

The MBTA is caught in the middle of the tariff standoff between President Donald Trump and China as it seeks to replace its older subway cars.

Trump had initially proposed increasing tariffs on imported Chinese goods by double digits. China retailated by escalating tariffs on U.S. products. Trump has gone back on the defensive by increasing U.S. tariffs on Chinese goods to a total of 104%, a measure that took effect on Wednesday, April 9. 

According to the Commonwealth Beacon, MBTA officials declined to comment on how the tariffs will impact its China-based subway car supplier. In essence, Trump's tariffs would effectively double the cost of the subway car exteriors and other components shipped to the MBTA's manufacturing facility in Springfield, where the cars are assembled.

A spokesperson for the Massachusetts affiliate of the Chinese company, CRRC MA, released a statement on Wednesday, April 9, stating that the tariffs will increase project costs, disrupt the company's supply chain, and “negatively impact rail car production.” The statement said CRRC MA remains dedicated to the MBTA's subway car project and is seeking assistance from several partner transit agencies and the Massachusetts congressional delegation.

T officials said in a statement shared with the Commonwealth Beacon, “While there are no contractual provisions related to costs associated with new tariffs, the MBTA is actively assessing the impacts—potential or otherwise—on existing and future contracts.”

Jim Aloisi, the former state transportation secretary and member of the advocacy group TransitMatters, said the tariff implications are significant. The MBTA has invested large sums of money to reduce the subway system's slow zones. That effort, he said, will be scuttled if passengers get stuck inside subway cars operating beyond their 30-year useful life span.

“No one's blaming the T for Trump's behavior, but we need to know what it is going to cost,” Aloisi said.