Minnesota companies’ stocks drop as markets react to Trump tariffs

MINNEAPOLIS (FOX 9) - The American stock market plunged after President Donald Trump announced new tariffs Wednesday.

Trump playing the long game

The backstory:

The Trump administration said the reasons for the latest round of tariffs are to ramp up domestic manufacturing by drawing factories and jobs back to America. As well as to address what he called "unfair" trade balances.

According to the White House, there will be a 10% baseline tax on imports. Plus, higher tariff rates on dozens of nations that run trade surpluses with the United States. Import taxes announced range from 10% to 49%.

"Foreign nations will finally be asked to pay for the privilege of access to our market. The biggest market in the world," said Trump. "If you want your tariff rate to be zero, then you build your product right here in America because there is no tariff if you build your plant, your product in America."

Critics say sweeping tariffs too broad

What they're saying:

The Consumer Brands Association, which several major Minnesota-based companies are members of including Target, General Mills, Hormel Foods, and Land O’ Lakes, published this response to the announcement.

"As the largest domestic manufacturing sector by employment, supporting more than 22 million American jobs and contributing $2.5 trillion to the U.S. GDP, the consumer packaged goods industry already manufactures the majority of its products here in the United States. However, there are critical ingredients and inputs that need to be imported due to scarce availability domestically. No amount of tariffs will bring these inputs back to the U.S. However well intended, the success of the President’s America First Trade Policy, must recognize the U.S. companies that are already doing it the right way but depend on imports for specific ingredients and inputs that cannot be sourced domestically. Reciprocal tariffs that do not reflect ingredient and input availability concerns will inevitably raise costs, limit consumer access to affordable products and unintentionally harm iconic American manufacturers. We encourage President Trump and his trade advisors to fine-tune their approach and exempt key ingredients and inputs in order to protect manufacturing jobs and prevent unnecessary inflation at the grocery store." 

The previously announced auto tariffs are now in effect. The baseline tariff is planned to take effect on Saturday. The reciprocal higher tariff is scheduled to kick in next Wednesday.

What's next:

The previously announced auto tariffs are now in effect. The baseline tariff is planned to take effect on Saturday. The reciprocal higher tariff is scheduled to kick in next Wednesday.