Missouri braces for impact as Trump prepares to impose 25% auto tariff on Canada
COLUMBIA, Mo. (KMIZ)
President Donald Trump is set to escalate his trade dispute with Canada, announcing a 25% tariff on auto imports that will take effect Wednesday — a move that could significantly impact Missouri.
Canada is Missouri’s largest trade partner. The Show-Me State imports goods such as transportation equipment and primary manufactures from Canada, according to a Missouri Partnership fact sheet. Nearly 100 Canadian companies operate in Missouri, while 31 Missouri companies have a presence in Canada.
Trump has said the tariffs are intended to boost U.S. automobile production, but tensions have heightened with Canada. The move follows Trump’s remarks threatening to make Canada the 51st state and referring to Prime Minister Justin Trudeau as a “governor.”
Automobiles are Canada’s second-largest export, which could leave Kansas City vulnerable. Kansas City houses a car assembly plant that exports nearly 40% of its products to Canada. According to the Office of the United States Trade Representative, Missouri exported an estimated $6.3 billion in goods to Canada.
Trump’s previously announced 25% steel tariffs also pose a risk to Canada, which is one of the largest steel suppliers to the U.S., according to the International Trade Administration. Trump tried a similar move in 2018, imposing a 25% tariff on imported steel in an effort to protect United States producers; however, two years after that tariff, the total employment in the U.S. steel sector fell by 4,000 people. Some experts speculate that this was the result of steel companies having to pay higher prices for domestic steel.
“Tariffs applied to other countries probably hurt some of the production in other countries. But ultimately, the price and the welfare loss are borne by the US citizens. That's what economic theory tells us,” Joe Haslag, a professor at the University of Missouri’s Department of Economics, said. “In the long run, the people who are hurt are going to be the American consumers.”
Top Missouri goods exported to Canada
| Goods | Dollar amount |
| Trucks | $2.7 billion |
| Plastics and plastic articles | $149 million |
| Fertilizers | $138 million |
| Motor vehicle parts | $128 million |
| Iron & steel tubes, pipes & sheets | $125 million |
| Pharmaceutical products | $120 million |
| Coal | $115 million |
| Pasta, breads and cereal preparations | $114 million |
| Aluminum and aluminum articles | 111 million |
| Soaps, candles and waxes | $104 million |
Top Missouri goods imported from Canada
| Engines and turbines | $413 million |
| Plastics and plastic articles | $268 million |
| Crude petroleum | $222 million |
| Aluminum and aluminum articles | $198 million |
| Copper and copper articles | $177 million |
| Motor vehicle parts | $155 million |
| Cereals | $147 million |
| Paper and paperboard | $124 million |
| Pasta, breads and cereal preparations | $121 million |
| Trucks | $120 million |
Data from the tables is provided by Connect2Canada with 2024 data from the US Census Bureau.
Data from the state’s economic research and information center shows that the roughly $6.3 billion worth of goods that Canada purchased from Missouri last year was more than any other country in the world, followed by Mexico, which purchased $4.3 billion. Many of those exports came in the form of produce and agricultural products, which accounted for over $5 million of Missouri’s exports to Canada.
Stoddard County has the most acres of farmland in Missouri, at 472,363, which makes out 2.5% of the state's total. With more than 2,000 farms in the county, some of its residents could be affected by the tariffs.
“(I) talked to several farmers about it, and I think it is probably going to hurt us in the short term. But they are committed,” state Rep. Steve Jordan (R- Stoddard County) told ABC 17 News. “My district was heavy for Mr. Trump, and they are committed to stick with the policies, and hopefully things will turn around and make things better in the long run.”
The White House argues the tariffs will stop the United States' reliance on other countries to produce local goods.
“It is going to work and the president has a brilliant team of advisors who have been studying these issues for decades and we are focused on restoring the golden age of America,” White House press secretary Karoline Leavitt told reporters on Tuesday.
Jordan believes that the tariffs will help his constituents in the long run. “I hope the tariffs bring everybody to the table,” Jordan said. “And I think that's what he's [Trump] trying to do with that. And I think it's working.”
