Minnesota Businesses, Consumers Face New Uncertainty as Trump Renewed Tariff Fight Keeps Costs High

President Donald Trump’s renewed tariff battle has left Minnesota businesses and everyday shoppers unsure about what will happen next. Recently, the U.S. Supreme Court struck down a major part of Trump’s tariff plan, ruling that the way he imposed broad import taxes was not legal. That decision brought hope for relief, especially for companies and families who have been paying more for goods. But almost immediately afterward, Trump responded by creating a new global tariff of up to 15% on imported products, saying this was necessary for fair trade, boosting American manufacturing and protecting national security. That has kept people in Minnesota and across the country stuck in a cycle of uncertainty about prices and planning for the future.

At Roots Roasting in St. Paul, owner Poire-Odegard said his business has had to raise prices over the past year because of tariffs, and even after the Supreme Court decision he didn’t feel relief. He had hoped the ruling would help make business more predictable, but the new tariffs mean costs are still high. Poire-Odegard said he’s learned to keep adapting and hopes to avoid raising prices again if he can.

Economists say that the new tariff is technically different from the ones the Supreme Court struck down, but it still creates uncertainty. University of St. Thomas economist Tyler Schipper pointed out that while the new tariff can last for 150 days without approval from Congress, it could be extended or replaced with other tariffs. He warned that businesses and consumers should expect tariffs to remain part of the economy for the foreseeable future.

This uncertainty matters because tariffs act like a tax on imported goods. Companies that bring products into the U.S. often have to pay these taxes when their shipments arrive. To handle those costs, they usually raise the prices of their products — and that can lead to higher prices for the people who buy them. According to recent economic data, most of the increases caused by the tariff changes were ultimately paid by U.S. companies and consumers, not by foreign exporters.

Schipper said that if companies can get refunds for tariffs they paid under the old system, that would help them, but it’s unlikely that individual shoppers will get money back. Even if some businesses receive refunds, that doesn’t automatically mean prices will drop for consumers, because companies might not pass savings onto shoppers.

Experts have estimated that tariffs could cost a typical family hundreds or even over a thousand dollars a year because of higher costs on everyday items — from groceries to electronics. Families who are already feeling squeezed by inflation and rising prices are worried about adding more financial pressure on top of that.

Tariffs have also affected Minnesota farmers and small business owners. Many farms in the state rely on foreign trade — exporting soybeans, corn and other produce to countries like China, Canada and Mexico. When tariffs change the cost of doing business or reduce demand from trade partners, it can hurt farmers’ income and planning. And many small shops that depend on imported products say that prices have already gone up significantly over the last year.

Some business owners say that even though big tariffs may be overturned, the long delays and frequent changes have already caused lasting damage. For example, companies that ordered products months ago still face high tariff charges, and some entrepreneurs worry the back-and-forth makes it hard to know what strategy to use for buying or selling their goods.

The federal government’s approach to trade policy is at the center of this debate. Trump says tariffs are tools to fix trade imbalances and protect U.S. workers, while critics argue that tariffs act like a tax on consumers and slow economic growth. With deadlines for the current tariff setup approaching and ongoing legal and political battles over trade authority, many people in Minnesota and nationwide feel caught in a waiting game. No one knows for certain whether prices will fall, costs for businesses will ease, or if new tariffs will emerge down the road.

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