PHOTO COURTESY OF THE OFFICE OF JB PRITZKER
Gov. JB Pritzker makes keynote remarks on the U.S.-Canada Summit in June 2024.
President Donald Trump’s plan to implement tariffs on key United States buying and selling companions might have an effect on greater than $100 billion value of products imported to Illinois from Canada, Mexico and China.
The international locations had been Illinois’ high buying and selling companions in 2023, in keeping with the Illinois Department of Commerce and Economic Opportunity. A variety of products coming to Illinois may very well be affected by tariffs, together with oil and pure fuel from Canada, beer from Mexico and electronics from China.
Trump initially dedicated to imposing 25% tariffs on items from Canada and Mexico starting on Feb. 4, together with a ten% tariff on power imported from Canada – although on Feb. 3 he introduced he’d delay the tariffs on Mexico after the nation’s president agreed to ship troops to the U.S.-Mexico border. The tariffs on Canadian items stay in place in addition to a ten% tariff on all items coming from China.
Canadian Prime Minister Justin Trudeau announced focused tariffs on Sunday on items exported by the US in response. However Monday afternoon following a name with Trump, Trudeau announce tariffs can be paused for 30 days after agreeing to implement related border safety measures as Mexico. The ten% tariffs on Chinese language items stay in place.
Trump has criticized the three international locations for permitting fentanyl to enter the nation and has argued Canada and Mexico have tallied up a commerce benefit over the U.S.
Whereas Trump hopes the tariffs will punish the international locations into implementing reforms and negotiating with the US, economists generally agree American consumers will bear the costs, together with in Illinois.
“Let’s name these tariffs what they’re: Trump’s Taxes on Working Households. If these tariffs stay in place, it is going to jack up the worth of groceries and items, make fuel dearer, and lift utility payments,” Gov. JB Pritzker stated in an announcement.
Illinois Republican Get together Chair Kathy Salvi defended Trump’s resolution.
“Beneath Democrat management, Mexico and Canada have gained financial benefit at America’s expense and President Trump is dedicated to stopping this. His insurance policies on Canada and Mexico function a powerful negotiating software to boost safety and prosperity for Illinois and the US,” Salvi stated in an announcement to Capitol Information Illinois.
Illinois acquired $127.8 billion of imports from China, Canada and Mexico in 2023, in keeping with DCEO. Canada is Illinois’ largest companion for each imports and exports, with the state receiving $65.6 billion of products from the nation in 2023.
Illinois is very depending on oil and fuel from Canada, which means customers may very well be in line for greater power and fuel costs. About 72% of Illinois’ imports, or $47.4 billion, from Canada in 2023 was oil and fuel, in keeping with DCEO.
Data from the Canadian government exhibits Illinois additionally acquired way more power merchandise from Canada than another state in 2020, with $20.5 billion of power sources imported to Illinois. Texas was the following closest state with $5.2 billion in power imports.
China was had the second highest variety of imports to Illinois in 2023, with $43.9 billion of products, together with $27.2 billion of computer systems and electronics.
Illinoisians would possibly find yourself paying extra for alcohol and automobiles if tariffs are carried out on Mexican items. Illinois acquired $18.3 billion of imports from Mexico in 2023, together with $5.9 billion of drinks and tobacco and $2 billion of transportation tools.
“Finally if Trump’s Taxes on Working Households stay in impact, they might pressure companies and provide chains to go prices onto Illinois customers,” Pritzker stated. “If costs go up and jobs are killed, we should all give credit score the place credit score is due: Donald Trump.”
Illinois companies might discover themselves within the crosshairs of a commerce struggle, together with Walgreens, Baxter, Abbott and different well being care provide corporations.
“Whereas it’s essential the US stand as much as dangerous actors which might be dumping merchandise into our nation, stealing mental property and illegally subsidizing industries, tariffs ought to be centered and used as a scalpel, not a sledgehammer,” Illinois Producers’ Affiliation CEO Mark Denzler stated in a social media post.
China, Canada and Mexico acquired $37.9 billion of exports from Illinois in 2023, almost half of the state’s exports for the yr. This features a mixed $3 billion of agricultural items to China and Mexico and almost $4 billion of equipment to Canada.
Canada’s proposed focused tariffs embody penalties on American exports of meals and metallic merchandise, in keeping with the CBC. Illinois despatched $3.2 billion of meals and first metallic manufacturing merchandise to Canada in 2023.
A number of Canadian premiers lashed out additional, ordering their providences’ liquor regulation our bodies to cease buying and promoting alcohol from the U.S.
“Commerce is an anchor of the Illinois economic system,” Pritzker stated. “Illinois is the only largest exporting state within the Midwest and fourth largest exporter in the US. Our jobs and financial success are linked to our high two buying and selling companions, Canada and Mexico, and likewise China.”
Editor’s observe: This story has been up to date to incorporate an announcement from Prime Minister Justin Trudeau stating tariffs have been paused.
Capitol News Illinois is a nonprofit, nonpartisan information service that distributes state authorities protection to lots of of reports shops statewide. It’s funded primarily by the Illinois Press Basis and the Robert R. McCormick Basis.
