How President Trump's tariffs could impact Minnesotans
Fears of a trade war are growing, ahead of a new round of tariffs.
Starting Tuesday, President Trump said most goods coming from Mexico and Canada will get hit with a 25% tariff. Stocks on Wall Street slumped in reaction to the news.
The president said the move is part of his push to get companies to build in America and to crack down on illegal immigration and drugs.
A recent study from the Peterson Institute for International Economics estimates the new tariffs could cost the average U.S. family more than $1,200 per year.
Here in Minnesota, experts say it would likely mean more pain at the pump.
Back in November, WCCO told you how Canadian tariffs would mean Minnesotans pay between 35 and 50 cents more per gallon for gas, according to Patrick DeHaan with Gas Buddy.
"Economists generally agree that those tariffs get passed on to consumers," Tyler Schipper, an associate professor of economics at the University of St. Thomas, told WCCO in November.
A report by Anderson Economic Group, found that the tariffs could drive up car costs by more than $12,000 for some models.
"It's very disappointing that President Trump's going to put another round of tariffs on," said Gary Wertish, President of the Minnesota Farmers Union.
Wertish said local farmers will be hit especially hard. For instance, almost all potash, a soil nutrient farmers need, is imported from Canada, he said.
Wertish said farmers have yet to recover from Trump's first-term tariffs with China.
"I hope at some point, common sense prevails. This is definitely going to have a detrimental effect for the farmers, which in turn, has a detrimental effect on the rural communities," said Wertish.
