
Tariffs Make Iowans Pay More for Goods and Other Ways They’ll Impact Iowa
The president recently signed executive orders imposing tariffs on Canada, Mexico, and China. These tariffs are set at 25% for Canada and Mexico, and 10% for China.
While this will likely lead to a rise in the cost of goods for Iowans, it could also have other negative effects.
Why Does Iowa Import Goods From Canada?
Iowa imports goods from Canada for many reasons, according to Agriculture and Agri-food Canada.
- Geographic Proximity
- Complementary Industries -
- Economic Efficiency and Cost-Effectiveness
- Supply Chain Integration
- Diversity of Products
- Cultural and Economic Ties
- Climate and Environmental - Canada's vast forests and mining industries provide Iowa with raw materials such as lumber, minerals, and metals, which may not be available locally. Renewable energy products like wind turbine components (Iowa is a leader in wind energy) can also come from Canadian manufacturers.
What Products in Iowa Could Be Affected by the Tariffs?
- Dairy Products
- Canadian Maple Syrup
- Frozen Fruits and Vegetables
- Grain & Flour
- Canola Oil
- Seafood
- Specialty Food Products - Canadian honey is also imported in Iowa.
- Ice Wine - Iowa imports this specialty wine, which requires the colder Canadian climate to produce.
What is Canada Doing in Response to Tariffs?
United States-Mexico-Canada Agreement (USMCA): As part of the USMCA (formerly NAFTA), Iowa benefits from reduced tariffs and streamlined trade with Canada. However, the tariffs signed recently have led to confusion, as Canada and Mexico negotiated this agreement in 2018 under the Trump administration. Now, Canada sees the new tariffs as a violation of that deal.
In response, Canada has announced that it will impose 25% retaliatory tariffs on billions of dollars worth of American goods, which will likely include products exported from Iowa.
How Else Could This Impact Iowans?
If Canadian tariffs increase the price of goods imported into the country, it could spell trouble for products that Iowa exports to Canada. According to the United States Trade Representative, Iowa exported $5.5 billion in goods to Canada in 2023, which accounts for 30% of the state’s total exports.
If those products are hit with tariffs, the higher costs could deter Canadian consumers and businesses from purchasing them, causing a potential dip in Iowa’s exports.
Worse, some Canadian companies may look for alternative suppliers outside of Iowa. Once those relationships are severed, it can be difficult to re-establish trade connections, which could hurt Iowa’s long-term economic prospects.
Read More: How Iowa Grants Will Be Impacted by the Presidential Executive Orders
Now we transition from unruly tariffs to unruly raptors. Check out these fun, beaked friends—they are wild wildlife:
Wanatee Park Cedar Rapids 01.26.25
Gallery Credit: Sloppy Joe
Slang Names Iowans Use For Cities & Towns in Iowa
Gallery Credit: Sloppy Joe