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Economist warns that Maryland will feel the impacts of President Trump's tariffs
WbalTV, Mar 06, 2025
Following the implementation of new tariffs in early March, RESI Chief Economist Darius Irani spoke with WBAL to discuss the tariffs and their potential impact. He described tariffs as being similar to a sales tax, where importers pay the tariffs on goods they bring in and pass the added costs onto consumers. While the increase in costs may vary, the overall price of everyday goods imported from Canada and Mexico, such as fruits, vegetables, waffles, soft lumber, and electronics, is expected to rise. Irani also noted that this could affect the Port of Baltimore, leading to a decrease in volume, which would impact the port, its operations, and workers, as well as the auto industry, which could be affected once the one-month exemption on tariff imports expires.
Economist warns Moore's 'Growth Agenda' may not deliver promised Maryland business boom
WJLA, Feb 22, 2025
There has been considerable discussion and many questions surrounding Governor Wes Moore’s $67.3 billion budget proposal, referred to as the ‘Growth Agenda.’ The budget aims to generate $1 billion in new revenue and reduce spending by $2 billion to address the state’s $3 million deficit. Darius Irani, chief economist at RESI, stated that while some aspects of the proposed budget could be beneficial, he remains skeptical about the tax increases. The governor’s plan includes expanding business taxes in exchange for a 0.26 percent reduction in corporate taxes. Irani questioned whether this strategy would actually foster the business growth the governor hopes for. He expressed concern that it could be a case of "giving with one hand and taking with the other," as business owners may initially benefit from the lower corporate tax, but this relief could be short-lived if they face higher personal tax rates. However, Irani noted that additional efforts to further reduce corporate taxes could likely stimulate some business growth.
Industries in Maryland contemplate tariff impacts
WMAR, Mar 04, 2025
The uncertainty and shortage of inventory experienced during the pandemic could return, as potential tariffs on automobiles may have a significant effect on Maryland's auto industry, possibly increasing vehicle prices by three to six thousand dollars. The concern extends beyond cars themselves, affecting car parts as well, given that large quantities of parts cross the border multiple times. RESI Chief Economist Darius Irani emphasized that a quarter of imports to the Port of Baltimore come from Mexico, Canada, and China, and any reduction in imports due to tariffs would impact the port’s operations and the businesses that depend on the smooth flow of goods between countries. Irani also noted that the consequences would extend beyond the automotive industry, affecting sectors such as construction, energy, and nickel.
McCormick executive warns costs of proposed tax could drive parts of business out of state
The Baltimore Sun, Mar 14, 2025
McCormick & Co. has warned that it may reevaluate local operations if a proposed tax on professional services is passed during the current budget negotiations in Annapolis. The proposed bill is aimed at addressing the state’s $3.3 billion budget deficit. However, this could prompt large employers like McCormick & Co., as well as smaller businesses, to relocate some or all of their operations out of Maryland, which would be a significant loss since these are Maryland-based companies, said Darius Irani, chief economist of RESI. Businesses outside of Maryland will also factor in the additional costs when deciding whether to operate in the state, he added. While production plants are difficult to move, non-factory-related jobs could potentially be relocated. Irani noted that the state is in a tough position with its spending and revenue issues and, while there may not be a perfect solution, the potential loss of businesses should be taken into account and the bill reconsidered.
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