The prices Iowans pay for gasoline and groceries are already sky high, but new tariffs on goods coming from Canada will push costs still higher on everything from alcohol to auto parts to lumber.
Iowa Senator Chuck Grassley says with the trade talks collapsing over the weekend, Canada responded to President Trump’s threats with a dollar-for-dollar duty on U.S. goods. The talks fell apart Friday night and those tariffs took effect on Saturday.
“Our nations economies support each other through key industries,” Grassley says, “particularly agriculture and critical minerals.”
Grassley says the president imposed a 50-percent tariff on some $28-billion worth of Canadian goods, and Grassley laments how the 2020 free trade deal, the United States-Mexico-Canada Agreement, is being left behind.
“While I appreciate President Trump’s willingness to take bold action to support U.S. producers,” Grassley says, “I’m hopeful negotiations will move forward very swiftly and that these tariffs will soon be lifted.”
President Trump used harsh language in his Truth Social post on Monday: “The U.S.A. will always be far bigger, richer, and stronger than Canada. Someone should get these clowns to ‘fall in line’ or, the consequences for Canada will be far WORSE!”
Grassley says this tactic could be harmful in multiple ways.
“Driving a wedge between the United States and Canada pushes our allies into the arms of countries like China,” Grassley says, “which exposes our nation to further economic and national security vulnerabilities.”
Reports show Iowa businesses ship more products to Canada than anywhere else. Iowa exports nearly $5-billion worth of goods to Canada each year, while Iowa imports more than $3-billion in goods from Canada. Mexico is Iowa’s second-largest trading partner.