SPRINGFIELD — Illinois leaders are sounding the alarm about the effect of stiff tariffs on goods from Canada, Mexico and China, three of the state's top trading partners. President Donald Trump on Saturday followed through on a previously promised order to place 25% tariffs against the two North American neighbors and a 10% tax on imports from China. Also under the order, energy imported from Canada, including oil, natural gas and electricity, would be taxed at a 10% rate.
Tariffs would also be allowed on previously exempt Canadian imports of less than $800. Retaliation began quickly. “The actions taken today by the White House split us apart instead of bringing us together,” Canadian Prime Minister Justin Trudeau said in a somber tone as he announced that his country would put matching 25% tariffs on up to $155 billion in U.
S. imports, including alcohol and fruit. Mexico’s president also ordered retaliatory tariffs.
China did not immediately respond to Trump’s action. Illinois Gov. JB Pritzker said the tariffs would function as a "tax on working families," driving up prices for residents already squeezed by inflation.
The second-term Democrat stressed trade's importance to the state, noting that its exports support some 800,000 jobs. “Growing the Illinois economy and creating jobs is always a priority for me — and I will continue working with our trading partners to support the economic might of Illinois with everything I’ve got," Pritzker said in a statement released after the order on Saturday. Still, he said, continuing the tariffs "would force businesses and supply chains to pass costs onto Illinois consumers.
"If prices go up and jobs are killed, we must all give credit where credit is due: Donald Trump.” The Trump administration said the measures, which start Tuesday, were intended to force the three countries to stop the spread of fentanyl and to pressure the two neighboring nations to limit any illegal immigration into the United States. The move is consistent with promises the second-term Republican made in the 2024 White House campaign.
A senior U.S. administration official, insisting on anonymity to brief reporters, said the lower rate on energy reflected a desire to minimize any disruptive increases on the price of gasoline or utilities.
The order contained no mechanism for granting exceptions, a possible blow to homebuilders who rely on Canadian lumber as well as farmers, automakers and other industries. The official did not provide specific benchmarks that could be met to lift the new tariffs, saying only that the best measure would be fewer Americans dying from fentanyl addiction. How could tariffs affect Illinois economy? Even before the order was issued Saturday afternoon, Democratic political leaders in Illinois predicted the move would lead to higher prices for residents already struggling with inflation-driven financial pressures.
"The people of Illinois, the people of the United States, are going to pay for what Donald Trump is doing," Gov. JB Pritzker said during a Saturday morning appearance on MSNBC's "The Weekend." Retaliatory measures could be costly for the fifth largest exporting state .
The state's exports totaled more than $78 billion across all industries in 2023, according to the most recent data available from the state's Department of Commerce and Economic Opportunity . The largest portion of last year's exports — over $20 billion — went to Canada. The country was also Illinois' largest source of imports, representing over $65 billion in 2023.
More than $47 billion of that figure came from oil and gas. "We get most of our natural gas and gasoline from the north, right? From Canada," Pritzker said during his television appearance. "So .
.. you're imposing that tariff on working families in Illinois.
" Pritzker's administration has sought to expand trade partnerships by highlighting the state's key location and extensive transportation infrastructure. Since 2019, Illinois' exports have increased 32% — or roughly $19 billion, according to state data. Last June, Pritzker led state officials on a trade mission to Canada, where they met with government and business leaders in quantum, finance, electric vehicles and other sectors.
The state supported more than 1,600 company trade missions to grow export sales under his administration, according to the governor's office. Chief concerns include prices, effect on farmers U.S.
Sen. Dick Durbin, the state's senior Democratic senator, echoed concern that the tariffs would ultimately result in higher prices for food and other necessities. "The president has ignored this reality, and Americans are going to be the ones to feel the real cost of these tariffs," he said in a statement Friday evening.
U.S. Rep.
Nikki Budzinski, D-Springfield, worried about how the move would affect residents, and particularly the farming economy, in her Central Illinois district. Agricultural products — like soybeans, corn and various grains — represented $4.41 billion worth of exported goods in 2023, according to the state data.
Of that total, $2.1 billion went to Mexico and over $1 billion to China . "If tariffs are being proposed as a way to support American workers and American manufacturing, I’m all ears," Budzinski said in a statement Friday, but she noted that with few details available, "I’m concerned about the potential for increased costs to consumers and strains on the agricultural economy in Illinois’ 13th District.
” In response to a request for comment on Friday, the Illinois Farm Bureau provided the following statement from President Brian Duncan: “Export markets for agricultural goods are essential for farmers and trade figures represent a significant contribution to their bottom line. "Illinois Farm Bureau is supportive of trade policies that seek to establish new, diverse market opportunities while eliminating existing trade barriers through support of bilateral, regional, and multi-lateral free trade agreements." The farm bureau did not immediately respond to a followup question seeking to clarify whether the statement was indicating support for or opposition to the tariffs.
First-term Democrat U.S. Rep.
Eric Sorensen of Moline expressed concerns about the effect of the tariffs on the price of goods and the local economy generally. "U.S.
trade policy needs to be smart — as we leverage what we manufacture versus what we import," he said. "I believe in putting American workers first, protecting jobs here at home while opening up new markets overseas.” 'A declaration of economic war' Trump’s order includes a mechanism to escalate the rates if the countries retaliate against the U.
S. Nonetheless, Mexican President Claudia Sheinbaum said on social media that she had instructed her economy secretary to implement a response that includes retaliatory tariffs and other measures in defense of Mexico’s interests. "We categorically reject the White House’s slander that the Mexican government has alliances with criminal organizations, as well as any intention of meddling in our territory,” Sheinbaum wrote.
“If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don’t do and the laundering of money that this illegal activity generates that has done so much harm to its population.” Trudeau, the Canadian prime minister, channeled the betrayal that many Canadians are feeling, reminding Americans that Canadian troops fought alongside them in Afghanistan and helped respond to myriad crises from wildfires in California to Hurricane Katrina. “We were always there standing with you, grieving with you, the American people,” he said.
Meanwhile, the Premier of Canadian province of British Columbia, David Eby, called on residents to stop buying liquor from U.S. “red” states and remove American alcohol brands from government store shelves as a response to the tariffs.
In a televised message, Eby deemed the Trump’s administration decision as “a declaration of economic war against a trusted ally and friend” and that he will stand up for his citizens and all Canadians in general. “Effective today, I have directed B.C.
liquor sales to immediately stop buying American liquor from red states,” he said. “Liquor store employees will be removing the most popular of these brands from government store shelves.” Trudeau warned of economic pain as the tariffs take effect and encouraged Canadians to "choose Canadian products and services rather than American ones.
” But he also voiced optimism in the enduring relationship between the two countries. “It is going to have real consequences for people, for workers on both sides of our border," he said. "We don’t want to be here.
We didn’t ask for this, but we will not back down in standing up both for Canadians and for the incredible successful relationship between Canada and the United States." The Associated Press and Pantagraph reporter Drew Zimmerman contributed to this story..
