In February 2025, the Trump administration initiated tariffs on key trading partners of Minnesota, including Canada, Mexico, and China [17]. Imports from China face tariffs as high as 145%, leading to retaliatory measures [3, 5]. Canada and Mexico are subject to a 25% tariff, with some exceptions for USMCA-compliant goods [2, 4].
Data indicates that manufacturers in Minnesota have increased production, likely to build inventory and secure supply chains in anticipation of price increases due to the tariffs [17]. Placer.ai data shows visits to industrial manufacturing facilities in Minnesota increased by approximately 4% in March compared to February [17].
Impact on Minnesota Industries
The tariffs impact various Minnesota industries. The average grocery bill in Minnesota could rise, with expected higher prices on fresh produce [18]. Clothing prices could also jump significantly [18]. Some Minnesota manufacturers are re-examining capital expenditures planned for 2025 and 2026 due to concerns about the unknown effects of the tariffs [20].
Minnesota Semiconductor Production
Minnesota is a growing hub for semiconductor manufacturing [22]. In May 2024, Polar Semiconductor in Bloomington announced a $525 million expansion project that would create 160 jobs [22]. Semiconductor manufacturers in Minnesota have added 2,000 jobs within the past two years [22].