What Canada's retaliatory tariffs could mean for Minnesotans

A growing trade dispute between the United States and Canada is prompting concerns about potential economic impacts in Minnesota, where industry and consumers maintain close ties to the country's largest trading partner.

The latest escalation follows U.S. tariffs President Trump imposed on Canadian goods over the weekend. Canadian officials have sharply criticized the move and announced retaliatory measures on Tuesday: tariffs of up to 50% on $27.6 billion of imports from the United States of America.

According to Canada's finance minister, the countermeasures will affect a range of products, including steel, appliances and dairy goods.

Tyler Schipper, an economics professor at the University of St. Thomas, said he doesn't expect broad economic consequences in Minnesota.

"Nobody's winning right now," Schipper said.

He noted that some consumers could feel the impact if tariffs drive up prices on imported products.

"If you're an individual consumer and you really like that Canadian whisky, this could hurt a lot," Schipper said.

However, Schipper noted that any tariff-related price increases could be moderated by reduced demand, making the ultimate impact difficult to predict.

He does have one big worry.

"One of the places where this trade war could escalate, if it did, would be with petroleum exports," Schipper said. "We get a lot of our crude oil here in Minnesota from Canada, and if that was something that the Canadians decided to use as a lever, as was actually suggested by the prime minister, that could really escalate the effect on people here in Minnesota."

Schipper said Canada appears less willing to back down than other U.S. trading partners that have recently faced tariff threats, increasing the possibility of a prolonged dispute.

"Hopefully there will be some kind of resolution," Schipper said. "Along the way, it seems like we're just kind of ruining a relationship with our neighbor."