By Okon Ekpenyong

The recent report from the National Retail Federation (NRF) emphasizes the considerable effects that President Trump’s tariffs may have on retailers, consumers, and the US economy. What implications does this hold for Ohio, which exported $56.6 billion in goods globally in 2024? Additionally, data from 2022 indicates that exports contributed to creating over 210,000 jobs.

What is a Tariff?

A tariff is a tax on imported goods the US importer pays, which ultimately gets passed on to consumers through higher prices.

Limit Illegal Crossing and drugs

To address the issues of illegal crossings and the trafficking of illicit drugs from the borders of Mexico and Canada, President Trump stated during his campaign for a second term and after his election that his administration would implement a tariff as a way to protect Americans and ensure border security and economic security. 

Whitehouse reports

Recently, Whitehouse said the administration will adjust tariffs on Canada and Mexico to minimize disruption to the automotive and manufacturing industry. First, it would impose a 25% tariff on goods not complying with the U.S.-Mexico-Canada Agreement (USMCA) rules of origin. Secondly, a lower tariff of 10% will be applied to energy products imported from Canada that do not meet USMCA standards is necessary. There will also be a 10% tariff on any potash imported from Canada and Mexico that falls outside the USMCA criteria. Goods from Canada and Mexico that claim and qualify for USMCA preference will not be subject to tariffs.

Impact on Ohio

Because Ohio is the nation’s 10th largest export exporter of goods, these tariffs can impact several of Ohio’s industries that rely heavily on exports. In 2024, Ohio exported $56.6 billion of goods, with Canada being its largest market, accounting for 35% of the state’s total exports. The state’s manufacturing exports, particularly in transportation equipment, chemicals, and Machinery, are also significant contributors to its economy.

The NRF cautions that tariffs will affect smaller and medium-sized enterprises, particularly those that depend significantly on imported products to offer affordable goods to consumers. For instance, in Ohio, data from the 2022 Ohio Department of Development Research office indicates that the top two exported commodities were industrial Machinery, including computers, vehicles, and parts.

Economists and NRF strongly suggest that consumers may see a rise in prices or businesses increased costs to stay flow, ultimately affecting their profit margins.

The Ohio export report data from 2024 reveals that Ohio’s Top Export Markets:

• Canada: $19.9 billion
• Mexico: $9.6 billion
• China: $3.0 billion
• Ohio’s Top Manufacturing Exports
• Transportation equipment: $16.3 billion
• Chemicals: $8.0 billion
• Machinery, except electrical: $6.4 billion

As of now, considering the ongoing position of the Trump administration regarding tariffs, here are several ways this scenario could impact industries in Ohio per multiple sources:

1. The imposition of tariffs may result in reduced exports, leading to job losses in sectors that heavily depend on international trade, such as manufacturing and agriculture.

2. Tariffs could lead to higher costs for imported goods, which would mean increased consumer prices. For example, the cost of eggs has increased dramatically, disproportionately affecting low-income families that allocate a large portion of their income toward essential goods.

3. Implementing tariffs could hinder Ohio’s economic growth by curtailing exports, elevating costs, and introducing uncertainty across various sectors.

4. Small business proprietors who are heavily dependent on importing and exporting products might need to adapt to manage the rising costs due to tariffs.

5. Ohio’s agricultural sector, which exported $6.1 billion of farm products in 2022, could face negative consequences from retaliatory tariffs. Given this broader impact, Ohio’s economy may experience the effects of tariffs.

Despite praise from the NRF and economists nationwide for the administration’s collaboration with companies such as Apple—who recently announced an investment of over $500 billion—Hussain Sajwani’s investment of $20 billion, $600 billion from Saudi Arabia, $500 billion over the next four years from Stargate, and a $14.1 billion bid from Nippon Steel, there is still a strong recommendation for the administration and policymakers to explore alternative tools for addressing trade disputes. Relying solely on tariffs can have far-reaching and detrimental effects on American businesses, consumers, and the economy.

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