President Donald Trump temporarily delayed for a month levying 25 percent tariffs on all goods imported from Canada and Mexico, but not before the stock market fell. And Trump went ahead with slapping 10 percent tariff on China, which responded with its own levies. It’s a tariff war that has Illinois lawmakers — and farmers — feeling uneasy about the economy. Why it matters: Agriculture is Illinois’ No. 1 economic driver, so a trade war wouldn’t just hurt farmers. It would have a ripple effect through the whole state, Congresswoman Nikki Budzinski, a Democrat who sits on the House Agriculture Committee, told Playbook. Tariffs 101: Crop prices are already low, and farmers are facing high costs to keep their operations going, Budzinski explained. “Farmers want to see more stability in the market instead of this whiplash back-and-forth from the Trump administration on tariffs.” Ditto from Jackson: “It's too erratic, which is bad for business,” said Congressman Jonathan Jackson, who also sits on the Ag Committee, said of Trump’s economic actions. “You can't invest during these uncertain times. Business needs a stable environment.” The biggest crops: Illinois is one of the top exporters of corn and soybeans in the country. A trade war could give Brazil, Illinois’ largest competitor for corn, an edge in the market. Increased tariffs would also raise the cost of everyday products such as avocados, oranges, bananas, beer, lumber and gas. It would “severely impact” consumers, Jackson said, thinking about his constituents in the Chicago area. Gov. JB Pritzker gave a name to Trump’s tariffs, calling them, “Trump’s Taxes on Working Families.” In a statement, the Democratic governor warned that tariffs would “jack up the price of groceries and goods, make gas more expensive and raise utility bills.” There’s a bright spot: China has long dumped cheap steel into the United States, putting a crimp in the U.S. market, including the Granite City area that Budzinski represents. So, the 10 percent tariff on China might benefit the U.S. steel industry, Budzinski said before China imposed its own tariffs. The nuance: “I hope the Trump administration doesn’t apply tariffs with a blunt instrument but rather with a precise knife to figure out how we can incentivize American manufacturing and American workers — but hold our agricultural economy harmless,” Budzinski said. The irony of it all: Trump’s focus on boosting the economy was a big part of his appeal in 2024. Now, his trade policies are raising concerns that they could actually tank the economy. Waiting to hear: Congressman Mike Bost and Congresswoman Mary Miller — Illinois Republicans who also sit on the Ag Committee — didn’t return requests for comment. MORE TRUMP RUMBLINGS Donald Trump is remaking the government. It will set up a legal showdown, by POLITICO’s Kyle Cheney DOGE’s access to federal data is ‘an absolute nightmare,’ legal experts warn, by POLITICO’s Josh Gerstein and Kyle Cheney Trump administration finalizing plans to shutter Education Department, by POLITICO’s Juan Perez Jr.
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