Canada is the top trading partner with the state of Illinois – and nearly $80 billion of goods and services are at play with the planned new tariffs.
Experts NBC Chicago spoke with this week say it likely means one thing for Illinoisans – higher costs on a range of products.
Those include oil, natural gas, precious metals, plastics, and food. University of Illinois professor Robert Bruno says Illinoisans should prepare to spend thousands more per year on Canadian goods thanks to a new 50% tariff.
“For every 1% increase in tariff, we would likely see costs go up per household roughly $300,” he said. “(The tariffs could) threaten upwards of 1,100 jobs in the manufacturing sector. You’re talking something truly substantial.”
And that’s not the only cost. Bruno says Illinois’ economy has already been hit by the Trump administration’s 10% global tariff, pointing to the impact specifically on Canadian products.
“There was a significant hit to the manufacturing sector of close to 7,500 fewer manufacturing jobs, and the overall GDP of the state,” Bruno said of the data in a report called “Tariffs and the Midwest,” released in July. “So the estimated economic value of all goods and services in Illinois decreased by approximately $5 billion.”
The Trump Administration says the tariffs are necessary, claiming Canada has “ripped off” the United States with high duties on agriculture products.
Illinois Rep. Brad Schneider says he is introducing a bill called “The Bad Deal Act,” which will refund any tariff money to consumers, and repeal an arcane federal law passed originally under the Smoot Hawley Act of 1930 that the Trump administration is using to justify the new levies.
“Despite what the president says, the American consumer pays the costs of tariffs,” Schneider said. “It is a tax on Americans, and it will make a lot of things more expensive.”
Schneider expects legal challenges to the tariffs as well – and acknowledges an uphill battle to get his bill passed – but says the costs of inaction will go beyond dollars and cents.
“I’m confident the relationship (with Canada) will survive after this administration, but the damage done will last for generations,” he said.
The tariffs are set to take effect Jan. 1, 2026, and Schneider says he will introduce his Bad Deal Act in Congress next week.
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