Illinois officials warn about impact of Trump's tariffs

[February 15, 2025]  By Kevin Bessler | The Center Square

(The Center Square) – As President Donald Trump makes good on his promise to slap tariffs on goods entering the U.S., Illinois officials are chiming in on the impact they will have on the state.  

Illinois Treasurer Michael Frerichs during inauguration in Springfield Monday - BlueRoomStream

Trump is threatening a round of reciprocal tariffs, suggesting the U.S. could tax imported goods at the same level that other countries tax U.S. exports. Trump said such tariffs would help domestic producers, reduce the nation's trade deficit, and would even the trading playing field with the European Union.

“They have really taken advantage of us,” said Trump “We have over a $300 billion deficit. They don’t take our cars, they don’t take our farm products, they take almost nothing.”

Trump initially announced tariffs on Canada and Mexico but postponed their implementation after the two neighboring countries agreed to take steps on border security. Illinois Treasurer Michael Frerichs said Canada is an important trading partner with Illinois and tariffs could be damaging.

“Illinois imports from Canada were north of $65 billion in 2023, a 75% jump since 2019,” said Frerichs. “Illinois’ exports to Canada where businesses will bear the impact of the Trump tax.”

Frerichs added that Illinois businesses depend on stability and President Trump's tariff tactics are part of his overall strategy of “sowing chaos and creating fear.”

A new survey by the Illinois-based Technology & Manufacturing Association finds small and midsize manufacturers are somewhat split over imposing tariffs on Canada, Mexico, and China. Out of 167 small and midsize manufacturers who participated in the survey, 49% support imposing tariffs on Canada, Mexico, and China, while 40% oppose the tariffs.

The Illinois Farm Bureau has expressed concerns over the tariffs and a potential trade war.

“Farm income has declined for a second straight year, and we know from experience that farmers and rural communities are the first to suffer from retaliatory tariffs,” said IFB President Brian Duncan in a statement. “We hope the administration will consider the economic impact on Illinois farmers and rural communities when contemplating tariff implementation.”

Other countries have promised to retaliate against Trump's international tariffs with additional taxes of their own on U.S. exports, raising the possibility of a costly, tit-for-tat trade war.