How much money could Trump’s proposed tariffs cost Illinois households each year?
While President Trump issued a 30-day pause on his proposed tariffs against Mexico and Canada Feb. 3, a tax on goods from China has gone into effect, and Illinois residents will likely see consumer prices increase as a result.
The additional 10% tariff on Chinese goods took effect Feb. 4, and officials in China have announced countermeasures to go into effect Feb. 10, NPR reported. A tariff is a tax on food, goods, energy and manufactured parts that are brought into the U.S. from other countries. The taxes are paid by the companies that purchase the imports — not the companies or countries of origin — and are typically passed on to consumers.
The White House has proposed instituting a 25% tariff on all imports from Mexico and on most Canadian imports, with an exception for a 10% tax on energy products, AP News reported. Late Monday, the president removed previous exemptions to a 2018 tariff on steel and increased the tariff on aluminum imports, instituting a 25% tariff on both.
The state of Illinois imports more than $200 billion worth of goods and commodities each year, and half of the state’s imports come from Canada, Mexico and China, Frank Manzo IV, an economist with the Illinois Economic Policy Institute, said in a Feb. 5 interview with the News-Democrat.
Illinois ranked third in the U.S. for imports in 2024, according to the U.S. government’s International Trade Administration. While a specific state may import an item, that may not be at its final destination.
“Tariffs would have an outsized impact on Illinois,” Manzo said.
If the president’s proposed tariff rates are implemented in full against all three countries, Manzo said the average Illinois household can expect to pay $2,000 to $3,000 more each year.
“Consumers would be worse off from the tariffs, which would threaten to upend supply chains and raise prices for families,” Manzo said.
Tariffs against Canada, China and Mexico will effect a tax hike on nearly 10% of Illinois’ $1.1 trillion economy, Manzo said.
Here’s what else to know about the effect tariffs could have on prices in the Land of Lincoln.
What items will be most affected in Illinois?
Some of the items that would be affected the most by the proposed tariffs against Canada and Mexico, as well as the current tariff against China, include meats, cars and car parts, oil, gas, steel and lumber, Manzo said.
“Mexico is the largest supplier of fruit and vegetables to the U.S., while Canada leads in exports of grain and wheat, as well as chicken and lumber,” Manzo said.
Additional import costs on these items would raise costs for transportation, manufacturing and construction, Manzo said. That could worsen inflation, and Illinois’ unemployment rate could increase depending on how companies choose to cope with higher costs.
Here are Illinois’ top imports from Canada in 2024, according to the International Trade Administration:
Oil and gas: $47,150,328,733 in actual trade value
Nonferrous (Exc Alum) and processing: $3,049,825,745
Basic chemicals: $1,447,708,938
Bakery and tortilla products: $802,118,721
Resin, synthetic rubber and artificial synthetic: $794,188,545
Rubber products: $529,880,939
Sugar and confectionary products: $510,876,276
Animal slaughter and processing: $504,564,885
Motor vehicle parts: $455,745,820
Plastics products: $441,771,950
Here are Illinois’ top imports from China in 2024, according to the ITA:
Communications equipment: $16,939,805,911 in actual trade value
Computer equipment: $6,668,969,051
Miscellaneous manufactured commodities: $2,331,710,972
Pharmaceuticals and medicines: $1,353,461,215
Household appliances and miscellaneous machines: $993,817,062
Electrical equipment and components: $955,643,912
Plastics products: $843,963,162
Other general purpose machinery: $829,356,505
Motor vehicle parts: $820,532,255
Audio and video equipment: $810,045,505
Here are Illinois’ top imports from Mexico in 2024, according to the ITA:
Beverages: $6,625,758,249 in actual trade value
Motor vehicle parts: $1,248,072,265
Motor vehicles: $962,053,856
Electrical equipment: $811,304,449
Iron, steel and ferroalloy: $718,579,578
Agriculture, construction and machinery: $715,419,775
Other general purpose machinery: $536,950,719
Communications equipment: $522,644,722
Sugar and confectionary products: $464,864,307
Electrical equipment and components: $462,518,286
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This story was originally published February 11, 2025 at 4:30 AM.
