Minnesotan's could see an increase in prices sooner rather than later thanks to President Trump's tariffs and the reciprocal tariffs from Canada, Mexico and China turning it into a trade war.
Where will consumers feel the effect first? Marketing Professor at the University of Minnesota Paul Vaaler explained.
"Non-durables, particularly foodstuffs, particularly fruits and foodstuffs that go to the grocery stores are going to show higher prices more quickly," says Vaaler.
And since Minnesota borders Canada? This state could be more vulnerable than other states.
"I think we've got a merchandise trade scale that's about $24 billion a year and import exports from it," explained Vaaler. "Our two largest trading partners are Canada and Mexico, and they're probably together about $11 billion of that $24 billion. So we are probably more vulnerable."
As this possible trade war wages on, how do we weather the storm?
"Move from more luxury goods to versions of it that have come from, you know, economic goods," he adds. "And if there are goods that you can go without, then you go without."
Minnesota is also likely to experience an extra burden when it comes to energy.
"That's our single biggest import into Minnesota, it's energy in the form of fossil fuels from Canada," Vaaler says. "But what's interesting is our biggest export is refined oil products. So think of that as an indirect effect on the Minnesota economy because it's going to affect the producers of those goods that are sending things back up to Canada."
Vaaler says supply chains from local companies such as Toro, Polaris, and Winnebago, who produce goods and services that require imported parts, could be affected faster than we think.
Senate GOP leader willing to give Trump tariffs a chance
John Thune says trade is important to his home state of South Dakota, but he’s ready to give Trump’s tariffs a chance.
“What I’m willing to do is give the president some latitude to try and accomplish the objective he seeks to get done here,” Thune said about the administration’s goal of reducing the flow of fentanyl at the borders.
The Republican leader acknowledged he’s in a “different place on tariffs” than some of his colleagues and even the White House. “But at the end of the day, it’s really about, trying to achieve the desired result.”
Import taxes are “a very powerful weapon that politicians haven’t used because they were either dishonest, stupid or paid off in some other form,” Trump said Monday. “And now we’re using them.”
The Associated Press contributed to this story.