FACT SHEET: Louisianans, Local Businesses, Farmers Brace for Higher Costs As Administration Announces New Tariffs

With President Trump set to announce another round of tariffs this afternoon, Louisiana businesses, farmers, and consumers are bracing for significant economic disruptions. With a diverse economy deeply tied to international trade, the state’s energy, seafood, manufacturing, and agriculture sectors face immediate disruptions due to the new tariffs. Tariffs will also impact companies ability to invest and grow in Louisiana.

Tariff Impact on Louisiana: By the Numbers

Louisiana’s economy is heavily reliant on trade, with Mexico and Canada being among its top trading partners. Tariffs on Mexican, Canadian, Chinese and European imports are expected to have widespread economic consequences.

• Energy Sector: Louisiana is a national leader in oil refining and petrochemical production, industries that depend on imported steel and aluminum for infrastructure and operations. The new tariffs are expected to increase fuel and utility costs by 10-15% for Louisiana residents and businesses.
• Seafood Industry: The state’s $2.4 billion seafood industry, which includes shrimp, crawfish, and oysters, could see higher costs due to tariffs on fishing equipment and disrupted supply chains. Shrimpers already face price pressures due to competition from imported seafood, and additional trade restrictions will further strain local fisheries. 
• Manufacturing: Louisiana is home to thousands of manufacturing jobs in shipbuilding, petrochemicals, and aerospace. Tariffs will raise production costs and threaten job stability in these sectors. Auto parts costs could also rise by as much as $3,000 per vehicle, impacting both manufacturers and consumers.
• Agriculture: Louisiana’s $2 billion agricultural export industry will be hit hard, particularly soybean, rice, and sugarcane producers. Retaliatory tariffs from key trading partners like Canada and Mexico could reduce demand for Louisiana’s farm products, cutting into profits for local farmers.

What Local News is Saying

Recent headlines across Louisiana highlight growing concerns over the new tariffs:

• “New trade war may hurt Louisiana farmers with higher tariffs” Louisiana First News
  
  “Farmers are price takers on their inputs,” said Andy Brown, Commodity and Public Policy Director for Farm Bureau Louisiana. “Things like fertilizer from Canada or processed goods from China, those are going to cost more.”
• “Louisiana one of the states that could be hit hardest by EU tariffs” KLFY
  
  Broader tariffs on all goods imported from the European Union – like those against Canada and Mexico, which were announced and then suspended earlier this month – would have a widespread impact on the U.S. economy.
• “Why Trump’s tariffs will negatively impact Louisiana businesses and raise consumer costs”
  Shreveport Times
  
  As President Trump’s tariffs impact the U.S. economy, Louisiana farmers are being burdened by rising costs and changing market prices. Beyond Louisiana agriculture, the tariffs are also affecting local consumers.
• “Louisiana business leaders say some Trump policies, tariff threats are creating uncertainty”
  Times-Picayune
  
  “Business leaders look for stability and we lack stability today,” said longtime Republican Dennis Stine, CEO of Sulphur-based Stine Lumber, which sells building materials wholesale and retail customers. “We’re going to have chaos for four years and we just have to prepare for that.”
• “How could Trump’s proposed tariffs affect Louisiana and LSU?” Reveille
  
  “a 25% tariff on a good that was originally $100 would result in consumers paying $125 for a domestically or foreign-produced good,” said Tirone, who also serves as LSU’s Faculty Senate president.”
• “Potential tariffs could impact your medications” WDSU
  
  “Tariffs and your medicine. The Trump Administration still plans on implementing a 25 percent tariff on countries like Mexico and Canada.”

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Tariffs Cost US is a new campaign of Trade Connects Us, a 501(c)(4) social welfare organization dedicated to providing the public with reliable, comprehensive information about global trade and tariffs, and their impact on both businesses and consumers.