Looming tariffs could push up the cost of groceries in Minnesota
Minnesota is a target in President Trump's trade war.
On Monday, Ontario, Canada slapped a 25% surcharge on all electricity exports to the state, along with Michigan and New York. Energy experts don't think that will impact prices much in Minnesota.
The president imposed a similar tariff on most imports from Canada and Mexico last week before delaying them for one month, and on Tuesday President Trump said that he would impose even higher tariffs on Canada, doubling the levy on all steel and aluminum imports to 50%.
Closer to home, the list of products affected by tariffs includes grocery items that many of us buy every week.
Tim and Tom's Speedy Market is a small business in St. Paul's Como neighborhood with a lot going on.
"I wouldn't say I am worried; it's just more one of those things you have to be on guard for," said owner Ted Spreigl, who describes the tariffs as a "roller coaster."
The head of the Minnesota Grocers Association is on guard, too.
"Minnesota will feel the tariff increases more than other states because our economy is more interdependent with Canada than most other states," said Patrick Garofalo.
Spreigl says he plans to try and not impact his customers.
Some stores import bacon and mushrooms from Canada — items they would have to pay more for. The same goes for peppers, avocados and cucumbers that come from Mexico.
"It's so important to emphasize this: Your independent groceries aren't just dealing with the threats of tariffs," said Garafalo. "They're also dealing with mandates from the state of Minnesota that have driven up our costs. Those two things combined together make us more vulnerable than others. What we as independent grocers want is elected officials on both sides of the aisle to listen to us and stop doing the things that are, or could be, raising prices for our consumers."
The Minnesota Grocers Association says smaller stores only operate on about a 2% profit margin.
Policy changes from either political party can push up the cost of doing business.
