Why Trump's tariffs will negatively impact Louisiana businesses and raise consumer costs
Presley Bo Tyler,
Shreveport Times | The Times
Sat, March 8, 2025
President Donald Trump announced his plan to enact tariffs of up to 25% on imports from Canada and Mexico, as well as tariffs of up to 20% on various Chinese goods.
The U.S. is the largest importer of goods in the world, with U.S. imports from other countries totaling $3.2 trillion in 2022, according to the Office of the U.S. Trade Representative.
In relation to this, the countries of China, Mexico and Canada are the U.S.' largest trading partners, providing over two-fifths of the foreign goods consumed in the U.S., USA Today reported.
As of March 5, President Trump has since delayed tariffs on goods from both Mexico and Canada, however, this reprieve will expire on April 2.
How could President Trump's tariffs impact Louisiana?
Tariffs imposed by the U.S. will result in tax increases for U.S. consumers and businesses, such as manufacturers, farmers and technology companies. These companies and businesses, as well as consumers, will be forced to pay more for common products and materials, according to the U.S. Chamber of Commerce.
As President Trump's tariffs impact the U.S. economy, Louisiana farmers are being burdened by rising costs and changing market prices. Beyond Louisiana agriculture, the tariffs are also affecting local consumers.
Trump's tariffs also target steel and aluminum, which would affect both production and consumption in Louisiana.
Under tariffs on such imported semiconductors, the cost of imported auto parts would increase, which would then increase the cost of repair. New vehicles would also become more expensive, which would increase demand and prices for used cars. These factors would then ultimately lead to higher insurance costs, says Greater Baton Rouge Business Report.
As for the steel industry, steel mills in Louisiana will likely face impacts from Trump's tariffs. In fact, one steel factory in Louisiana has closed due to the new tariffs, leaving hundreds jobless, according to IATSE Local 728.
Other businesses in Louisiana, like metal suppliers, that source materials from outside the U.S. are also likely to be impacted due to changes in costs.
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Louisiana restaurants are also likely to be impacted by Trump's tariffs, due to affects regarding ingredient costs, pricing strategies and menu planning, according to the Louisiana Restaurant Association.
Sat, March 8, 2025
President Donald Trump announced his plan to enact tariffs of up to 25% on imports from Canada and Mexico, as well as tariffs of up to 20% on various Chinese goods.
The U.S. is the largest importer of goods in the world, with U.S. imports from other countries totaling $3.2 trillion in 2022, according to the Office of the U.S. Trade Representative.
In relation to this, the countries of China, Mexico and Canada are the U.S.' largest trading partners, providing over two-fifths of the foreign goods consumed in the U.S., USA Today reported.
As of March 5, President Trump has since delayed tariffs on goods from both Mexico and Canada, however, this reprieve will expire on April 2.
How could President Trump's tariffs impact Louisiana?
Tariffs imposed by the U.S. will result in tax increases for U.S. consumers and businesses, such as manufacturers, farmers and technology companies. These companies and businesses, as well as consumers, will be forced to pay more for common products and materials, according to the U.S. Chamber of Commerce.
As President Trump's tariffs impact the U.S. economy, Louisiana farmers are being burdened by rising costs and changing market prices. Beyond Louisiana agriculture, the tariffs are also affecting local consumers.
Trump's tariffs also target steel and aluminum, which would affect both production and consumption in Louisiana.
Under tariffs on such imported semiconductors, the cost of imported auto parts would increase, which would then increase the cost of repair. New vehicles would also become more expensive, which would increase demand and prices for used cars. These factors would then ultimately lead to higher insurance costs, says Greater Baton Rouge Business Report.
As for the steel industry, steel mills in Louisiana will likely face impacts from Trump's tariffs. In fact, one steel factory in Louisiana has closed due to the new tariffs, leaving hundreds jobless, according to IATSE Local 728.
Other businesses in Louisiana, like metal suppliers, that source materials from outside the U.S. are also likely to be impacted due to changes in costs.
More in Business
Louisiana restaurants are also likely to be impacted by Trump's tariffs, due to affects regarding ingredient costs, pricing strategies and menu planning, according to the Louisiana Restaurant Association.
How other countries' imposed tariffs in response to U.S. tariffs would affect Louisiana
Under retaliation tariffs imposed by the European Union and China on U.S. exports, goods from the U.S. will become more expensive, which will result in the loss of both sales and jobs in Louisiana, says the U.S. Chamber of Commerce.
Approximately 553,200 jobs in Louisiana are supported by trade and, furthermore, $7.1 billion worth of total state exports are threatened by new tariffs.
Around $7 billion worth of total exports from Louisiana to China are threatened by new tariffs. To break this amount down, Louisiana produces and exports $5.6 billion worth of soybeans, $213 million worth of liquified natural gas and $101.4 worth of styrene, according to the U.S. Chamber of Commerce.
Additionally, about $87.4 million worth of total exports from Louisiana to the European Union are threatened by new tariffs. As Louisiana produces and exports $51.5 million worth of corn, $26.4 million worth of vegetables and $2.2 million worth of iron or steel, says the U.S. Chamber of Commerce.
What are tariffs and how do they work?
A tariff is a tax on goods received or imported from another country, and tariffs typically make goods from other countries more expensive, which encourages consumers to buy goods made in their own country.
When goods are manufactured in another country and shipped to the U.S., the tariffs for those foreign goods can be lower for countries that have trade agreements with the U.S. and higher for those that do not.
Tariffs for the items are collected by Customs and Border Protection agents located at 328 different ports throughout the U.S. Then, money paid by U.S. companies goes to the U.S. Department of Treasury. From here, U.S. companies usually pass-on higher costs to customers in the form of higher prices.
Presley Bo Tyler is a reporter for the Louisiana Deep South Connect Team for Gannett/USA Today. Find her on X @PresleyTyler02 and email at PTyler@Gannett.com
This article originally appeared on Shreveport Times: How will Trump's tariffs impact Louisiana? How would a trade war?
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