2 weeks Ago By Jonah Kaplan
MINNEAPOLIS — Minnesota businesses and consumers are getting a temporary financial break. On Monday afternoon, President Trump announced a pause on tariffs on Mexico and Canada . Still, the threat of a trade war revealed just how much we rely on imports from those countries, especially our northern neighbor.
Minnesota imports more than $14 billion worth of products from Canada annually. 64% of that is energy from crude oil, natural gas and electricity. Beth Richardson is Canada's consul general in Minneapolis.
"General Mills actually brings in oats from Canada, mills them here in Minnesota and a few other Upper Midwest States, puts them in a box of Cheerios and then sells those back to Canadians," Richardson said. And while cereal might get the day going, it's Canada's crude oil that helps keep Minnesota's economy going. Two refineries, including this one in Saint Paul, make most of our gasoline.
Not to mention jet fuel, diesel and other chemicals to make items like plastic. "So the U.S.
imports about 60% of all the oil imports from Canada and Canadian oil is about 25% of all oil refined in the United States," Richardson said. Senator Amy Klobuchar over the weekend warned gas prices could've spiked up to 50 cents per gallon. "There are ways to do targeted tariffs, especially with China, but across-the-board tariffs are really scary for Minnesota," Klobuchar said.
The tariff threat, though, instilled enough fear that it forced both sides to the negotiating table and bring some positive change. "Just now our prime minister announced a Canadian czar on combatting fentanyl. What did we learn from this? Partnership can be turbulent, but also productive," Richardson said.
A 10% tariff on goods from China is still expected to take effect Tuesday. Jonah Kaplan is WCCO and CBS News Minnesota's investigative reporter and has built a strong reputation for his balanced and in-depth coverage of high-impact issues including the economy, immigration, education, public safety, and the military, among others..
