MN lawmaker wants state to study tariffs impact

ST. PAUL, Minn. (FOX 9) - A Minnesota lawmaker is proposing legislation for the state to study the potential impacts of the tariffs issued by President Donald Trump.

Tariffs announced

The backstory:

President Trump announced a package of tariffs during a Wednesday news conference.

The announcement included an auto tariff of 25%, reciprocal tariffs ranging from 10% to 49% for nations that charge us a tariff, and a baseline tariff of 10% for other nations. The president said he aims to jump-start manufacturing in the United States.

What they're saying:

President Donald Trump said the United States could no longer go on the trajectory it's seen over the past 50 years in manufacturing. He promised his tariffs would help bring back America's once-thriving industries, like the auto industry.

Trump also said the past trade set-ups have enriched other nations at the expense of U.S. taxpayers.

"At what point do you say, you got to work for yourself?" asked Trump. "This is why we have the big deficits, this is why we have that amount of debt that's been placed on our heads over the last number of years. We're really not taking it anymore."

Gov. Walz reaction:

Gov. Tim Walz blasted the tariffs plan during an interview with MSNBC on Wednesday.

"The real irony of this is, the folks who supported Donald Trump, some of the working folks, the miners in northern Minnesota – 650 miners were just laid off in taconite mining," Walz said. "Our farm community is on pins and needles because of these tariffs. Then when you go to war with Canada – whether its energy or whether its potash for fertilizer – these are fundamental inputs that are already going to drive up costs on very narrow margins."

"It's like Trump is stuck in the 80s," the governor added. "His music, his clothing, his thinking. He has been on this tariff thing forever. And every economist, conservative or liberal, will tell you they just simply don't work."

Walz says he is set to meet with officials in Canada to discuss the impact of the tariffs.

How will Minnesota be impacted?

What we know:

On Thursday, Rep. Michael Howard (DFL-Richfield) introduced new legislation for Minnesota to study the impacts of the new tariffs on businesses, consumers, and the state economy as a whole.

The bill, if approved, would direct the Commissioner of Minnesota Management and Budget to examine the impact of the tariffs and any retaliatory tariffs brought by other nations. The findings will be sent to the legislature by next February.

Rep. Howard worries the tariffs will have major consequences on groceries, agriculture, construction and housing. The stock market reacted poorly to the tariffs on Thursday, with the Dow dropping nearly 4% and the S&P 500 and NASDAQ seeing their largest drops since the start of the pandemic.

The president, speaking on Thursday, said he wasn't worried about the short-term stock market hit. He says his policy, in the long term, will be good for the United States.

"I think it’s going very well," the president said. "We have an operation, like when a patient gets operated on and it’s a big thing. I said this would exactly be the way it is."