Here’s how Trump’s tariff plan could impact Minnesota

Major tariffs that were set to go into effect Tuesday morning are now paused for 30 days. President Donald Trump on Monday held off on his tariff threats against Mexico and Canada for 30 days after the two U.S. neighbors agreed to boost border security efforts.

But if the tariffs do go into effect, it could have a big impact on everything from your gas to your groceries.

Trump said the tariffs on Canada, Mexico and China are necessary to pressure the countries do more to curb fentanyl coming into the U.S.

On Monday morning, Trump paused tariffs on goods from Mexico as the two countries work out a deal, and later that day, Canadian Prime Minister Justin Trudeau announced on X that Canada pledged additional cooperation with the U.S. on border security.

Trump on Saturday had directed that 25 percent tariffs on most imports from the two American partners — and 10 percent on Canadian energy products — go into effect at midnight Tuesday. A new 10 percent tariff on Chinese goods is still set to take effect.

Canada is Minnesota's top trading partner. According to the state’s trading office, in 2023 Canada’s total trade with Minnesota was $21.2 billion. That’s followed by Mexico with $6.6 billion and China with $6 billion.

Minnesota Democratic U.S. Senator Amy Klobuchar said she opposes the tariffs.

“This across-the-board tariff is not going to help things, and I also don’t understand why they have a higher tariff on Canada than on China,” she said.

Klobuchar said the tariffs will “wallop” northern states like Minnesota. Klobuchar said she believes the state's agriculture industry will be hit the hardest, and that the medical device and manufacturing sectors will also suffer.

Minnesota Department of Agriculture Commissioner Thom Petersen said in a social media post that “MDA is assessing the impact on farms and business,” and that they appreciate those who reached out.

Petersen identified Minnesota’s three largest agriculture trading partners as Mexico, Canada and China.

Canadian Prime Minister Justin Trudeau announced a 25 percent tariff on billions of dollars of U.S. goods, set to go into effect Tuesday.

Koochiching Economic Development Authority Board Chair Allen Rasmussen said sales to Canadians make up more than a quarter of International Falls retailers’ business.

“Our merchants here in International Falls will definitely be affected. It’s one of the reasons that Menards built a very large store here. They do a lot of business with Canadian residents,” Rasmussen said. 

Rasmussen said many people he knows thought the president would not follow through on his threat to impose tariffs.

On Sunday, Trump acknowledged the tax on imports could have negative effects on American consumers.

“We may have in the short term, a little pain, and people understand that. But long term, the United States has been ripped off by virtually every country in the world,” he said.

Kingshuk Sinha, the chair of the Supply Chain and Operations Department at the University of Minnesota’s Carlson School of Management, spoke with Minnesota Now to explain how the tariffs might affect Minnesotan consumers.

Use the audio player above to listen to the full conversation.

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