Tariffs strain key industries, raise prices for consumers, and threaten jobs and supply chains.
| FOR IMMEDIATE RELEASE March 4, 2025 Contact: [email protected] |
NEW ORLEANS, La. – As President Trump’s latest tariffs on Canadian and Mexican imports take effect on March 4th, Louisiana businesses and consumers are bracing for significant economic challenges. 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. The 25% tariff on Canadian and Mexican imports, along with levies on Chinese and European Union goods, is 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. The 25% tariff on imports from Canada and Mexico, combined with a 10% levy on goods from China, 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:
- “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.”
What Small Business Owners are Saying
- “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.”
- “We’re a little worried. The reason being, you’re going to make your farm loan based on rates in January or February, so you’re trying to cash flow on anticipated price. So, if something happens, say May or June, you got your crop in the ground, your inputs are already in. You’ve already paid your money. If something happens to where it’s going to drop, what you’re going to get, by 30%? Well you’re just kind of hung out to dry. There’s not much you can do.” – Brandon Vail, Southeast Louisiana Farmer
- “That would have wiped out my company’s profit for a quarter. That does nothing except harm our 170 employees.” – Geoffrey Meeker, Founder, French Truck Coffee
“They’re going to see the increase in Houston when they go to buy their next supply of steel coils and say, ‘Look, we’re going to have to raise our prices.” – Ian Bertrand, co-owner, St. Martin Steel
Looking Ahead
As Louisiana businesses grapple with the consequences of these new tariffs, industry leaders and policymakers are calling for immediate action to mitigate economic harm. Given the state’s reliance on international trade, pressure is mounting to reverse these tariffs before long-term damage is done to Louisiana’s economy.
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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.
