Minnesota Prepares for Trump's Proposed Tariffs

ARTICLE | January 28, 2025

Authored by Schlenner Wenner & Co


The potential implementation of President Donald Trump's proposed tariffs has businesses in Minnesota bracing for impact. The proposed tariffs of 25% on goods from Mexico and Canada, and 10% on Chinese imports, present a significant shift from the current average of 2%, and the implications for Minnesota's economy could be profound.

Minnesota-based companies like 3M, Cargill, and Ecolab, deeply embedded in global trade flows, could be particularly affected. These companies manage worldwide operations and global supply chains, and any retaliation from other countries in the form of increased tariff rates on U.S. imports could significantly impact their businesses.

Minnesota's largest trading partner is Canada, with the state importing $14.4 billion worth of goods annually. The state’s biggest imports from Canada are crude oil, natural gas, and electricity. If tariffs are imposed, the increased costs will likely be passed onto consumers, resulting in higher household costs, particularly for energy.

The food industry in Minnesota, which includes a large number of immigrant-owned businesses such as restaurants, ethnic markets, and food supply companies, could also face significant challenges. Increased tariff rates could make essential ingredients more expensive, forcing businesses to either absorb the cost or pass it on to customers.

Moreover, Minnesota's agricultural sector, known for commodities such as soybeans and corn, could also be adversely affected. According to the Minnesota Department of Agriculture, Minnesota is the fourth-largest agricultural exporting state, bringing in approximately $9 billion annually. An escalation into a trade war with our biggest trading partners could result in agricultural sectors bearing the brunt of the impact.

Despite the concerns, some speculate that Trump's tariff threats could be more of a negotiation strategy rather than a concrete plan. He had previously threatened Mexico with a tariff over illegal immigration during his first term but did not impose the tariff after Mexico took action to curtail illegal immigration.

Nevertheless, the uncertainty surrounding the proposed tariffs and their potential impact has businesses and consumers on edge. While the exact design and nuances of the tariff policy remain unknown, the potential for a significant impact on Minnesota's economy is clear. Businesses are closely monitoring developments, hoping for a favorable outcome that maintains strong international trade relations and supports the continued growth of Minnesota's economy.

Our Schlenner Wenner team will be available to answer any questions that may arise over the next few months.  Please feel free to contact our offices for any updates.

Let's Talk!

Call us or fill out the form below and we'll contact you to discuss your specific situation.

  • Should be Empty:
  • Topic Name:

As CPAs, we know how to keep things balanced. At Schlenner Wenner & Co. we balance the resources of our professional staff with the individual needs of our clients. Our goal is to help clients keep their life in balance enabling both large and small businesses to become prosperous and reach their full potential.

Schlenner Wenner & Co. is proud of its record of maintained lasting relationships with both individuals and businesses. We are committed to providing you with quality work and innovative and timely solutions to your financial needs. Since our business started in 1964, we have learned a great deal, and we are ready to help your company grow and succeed. We are looking forward to working with you.

For more information on how Schlenner Wenner & Co. can assist you, please contact us.