As the Trump administration continues to implement across-the-board tariffs and threaten even more, Iowa small businesses, farmers, and consumers are bracing for immediate economic disruptions and higher costs. The state’s economy faces mounting challenges across manufacturing, agriculture, and housing sectors.

Tariff Impact on Iowa: By the Numbers

Iowa’s economy is deeply connected to international trade, with exports totaling $18.4 billion in 2023, supporting over 416,000 jobs across the state. 

Agriculture: Agriculture is one of the most vital pillars of Iowa’s economy, accounting for the bulk of its export volume. In 2022, Iowa’s agricultural exports totaled $16.5 billion, with corn, soybeans, pork, and beef leading the way. With tariffs raising input costs on equipment, feed, and fertilizer, and foreign markets threatening retaliation, Iowa’s farmers face mounting uncertainty and squeezed margins.

Manufacturing: The manufacturing sector is Iowa’s single largest industry, contributing $43 billion of value annually, making up 17% of the state’s GDP, and employs more than 217,000 workers. Advanced manufacturing in machinery, food processing, and aerospace is deeply reliant on global supply chains for both exports and imported parts. Tariffs on steel, semiconductors, and other components drive up production costs and introduce delays and price volatility.

Housing Affordability: Rising materials costs are also affecting Iowa’s housing sector. As of January 2025, the median home price reached $227,500, up 1.8% year-over-year. Tariffs on critical building materials such as wood, glass, and metals are projected to increase construction costs by nearly $10,900 per home, putting additional pressure on families already facing affordability challenges.