{"id":7777,"date":"2025-05-15T04:41:00","date_gmt":"2025-05-15T04:41:00","guid":{"rendered":"https:\/\/princetonillinois.com\/?p=7777"},"modified":"2025-05-15T04:41:00","modified_gmt":"2025-05-15T04:41:00","slug":"we-might-just-have-to-weather-the-storm-how-trump-tariffs-could-affect-the-illinois-valley-shaw-local","status":"publish","type":"post","link":"https:\/\/princetonillinois.com\/?p=7777","title":{"rendered":"\u2018We might just have to weather the storm\u2019: How Trump tariffs could affect the Illinois Valley – Shaw Local"},"content":{"rendered":"


An ADM worker loads a barge container with grain on Thursday, Feb. 6, 2025, on the Illinois River at Spring Valley. <\/span>(Scott Anderson)
Farmers and grocery shop owners in La Salle County<\/a> are bracing for the impact the U.S. faces of a potential trade war from recently imposed federal tariffs<\/a>.
On Feb. 1, the Trump administration announced plans to impose 25% tariffs on imports from Canada and Mexico, along with a 10% tariff on imports from China.
Hours after the announcement, Canada and Mexico ordered retaliatory tariffs<\/a> on a variety of American goods, including many products shipped to U.S. farms.
Agriculture is one of La Salle County\u2019s largest industries.
According to David Isermann, president of the La Salle County Farm Bureau, local farmers rely heavily on exports for their income, particularly grain, corn, soybeans and cattle, to markets across the globe.
More than 20% of U.S. farm income comes from exports, according to the American Farm Bureau Federation. In 2024, the U.S. exported more than $30 billion in agricultural products to Mexico, $29 billion to Canada and $26 billion to China.
While some of the tariffs on Canada and Mexico have been temporarily suspended, Isermann expressed concern about what might happen on local farms if the situation escalates.
Without a resolution, he said trade disruptions could increase production costs and reduce export opportunities.
\u201cCanada and Mexico are our top two trading partners for most agricultural goods,\u201d Isermann said. \u201cIf these tariffs were reinstated, it could hurt us both ways.\u201d
Rick Pretzsch, economics professor at Illinois Valley Community College<\/a>, said the 25% tariffs specifically targeting Canada and Mexico are a surprising situation, given the two countries history and importance as trade partners.
\u201cThis is a unique situation, specifically with the tariffs on our neighbors,\u201d Pretzsch said. \u201cTrump did impose tariffs in his first term, but Canada and Mexico were mostly exempt.\u201d
Mexico is a key market for U.S. corn, while Canada is a vital source of potash, a fertilizer essential for farming, according to Isserman.
Isermann said the uncertainty surrounding the continuation of the tariffs has created a sense of unease among local farmers.
\u201cWe haven\u2019t really seen the immediate impact of these new tariffs yet,\u201d he said. \u201cRight now, we\u2019re in a period of wait and see but it\u2019s definitely a nervous time, and we\u2019re still hopeful things can stabilize.\u201d
Isermann said the Illinois Farm Bureau and the American Farm Bureau Federation sent a statement to the Trump administration expressing their concerns.
He noted agriculture is often the first industry to be impacted negatively by retaliatory tariffs and trade wars, and both organizations were communicating these concerns to policymakers, including Illinois U.S. senators and house of representatives.
Pretzsch supported Isermann\u2019s comments that agriculture is often hit hardest in trade wars.
\u201cAgriculture is one of our major exports, so any time there\u2019s a trade war, it\u2019s affected. When other countries retaliate with tariffs like we could see now, agricultural products are usually the target,\u201d Pretzsch said.
Mark Witek, owner and partner at Witek Wealth Management in La Salle<\/a>, said while the tariffs could create some short-term market volatility, businesses and investors are cautious, waiting to see the final details of the tariff policy before making decisions.
\u201cUntil we know exactly what the tariffs will be, it\u2019s hard to tell exactly what the effects will be,\u201d Witek said.
Witek noted even without tariffs, local businesses tied to agriculture are already facing challenges with the market for fertilizers trending down.
\u201cFertilizer stocks are trading at all-time lows, and with high operational costs already squeezing farmers, it\u2019s creating a tough situation,\u201d Witek said. \u201cA lot of that may already be priced into fertilizer stocks, but it\u2019s still a challenging environment.\u201d
Despite these concerns, Witek emphasized tariffs can at times be used as an economic tool to create leverage in markets, so it\u2019s important that industries don\u2019t overreact until everything is final.
\u201cSometimes tariffs are used as a negotiation tool, and certain issues are worked out before they actually take place,\u201d he said.
Pretzsch said the potential goal behind the Trump administration\u2019s tariff strategy.
\u201cI believe the ultimate goal is to bring production back to the U.S.,\u201d he said. \u201cHowever, even if that goal is achieved, it won\u2019t happen overnight \u2014 it will take time. And even then, it will likely drive up the prices of those products, even if they\u2019re being produced here.
\u201cThe advantage of trading with Canada and Mexico is that, for one, the Canadian dollar is weaker than the U.S. dollar, making those products cheaper for us. Similarly, labor costs in Mexico are much lower, which also helps keep prices down.\u201d
Both Pretzsch and Witek said until there is more clarity from policymakers, businesses are likely to remain in a holding pattern.
\u201cA lot of businesses seem to be taking a wait-and-see approach, as any speculation at this early stage isn\u2019t productive,\u201d Witek said.
Colin Kuehl, political science professor at Northern Illinois University, said what\u2019s good for politics can sometimes clash with business.
\u201cUncertainty is bad for business. This constant back and forth of \u2018What\u2019s he going to do?’ which I think it part of Trump\u2019s political brand … in some ways can make him an affective politician, but it\u2019s bad for business,\u201d Kuehl said. \u201dIt\u2019s hard to make longterm business decisions when you don\u2019t know your cost in a few months on a key supply you\u2019re importing.\u201d
Kuehl said it\u2019s likely that increased tariffs, which he likened to a \u201cregressive tax,\u201d will have the biggest impact on the poorest people.
\u201cThe reason we\u2019re buying these goods from China, Mexico and Canada is because they can produce them the most cheaply, the most efficiently. If we put this tax on them, they\u2019re going to be more expensive,\u201d Kuehl said. \u201cA lot of companies around here rely on those imported goods like imported steel and aluminum to produce what they make, whether thats automobiles or beer or anything like that. So that makes it harder for them to compete and could have potential consequences on jobs.\u201d
Local business owners like Tom McDonell, owner of Polancic\u2019s Meats and Tenderloins in Ottawa<\/a>, is taking a wait-and-see approach. He said agriculture is the backbone in the food industry, with rising produce prices already affecting his business.
\u201cAnything that hurts agriculture or grocery stores is going to impact us,\u201d McDonell said. \u201cInflation was already a problem for food, so I don\u2019t think anybody wants to see the situation get worse.\u201d
According to the U.S. Department of Labor, inflation rose 3% in January from the year before, primarily driven by higher grocery and gas prices.
McDonell specifically noted egg prices are currently \u201cthrough the roof\u201d and essential for many meat products made at his shop. That issue also is tied into the effect and response to the avian flu.
Much like local farmers, McDonell is waiting to see how the situation evolves before raising prices significantly or making any major future plans.
\u201cI don\u2019t want to raise prices too much because people are already struggling to spend money on food as it is,\u201d he said.
With the tariffs being temporarily suspended, McDonell shares Witek\u2019s hope that they are part of negotiations that could lead to a favorable market outcome.
\u201cI\u2019m hoping it\u2019s more of a bluff and things stabilize at some point,\u201d McDonell said. \u201cFor now, we might just have to weather the storm and hope for the best.\u201d
The tariffs against Canada and Mexico are set to remain paused until March 4. Retaliatory tariffs and other measures also are on hold through that date.
As the deadline approaches, La Salle County farmers and business owners face continued uncertainty, awaiting clarity on how trade negotiations will turn out.
\u2014 Shaw Local News Network editor Kelsey Rettke contributed to this report.<\/i>
Copyright \u00a9 2023 Shaw Local News Network
Copyright \u00a9 2023 Shaw Local News Network<\/p>\n

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An ADM worker loads a barge container with grain on Thursday, Feb. 6, 2025, on the Illinois River at Spring Valley. (Scott Anderson)Farmers and grocery shop owners in La Salle County are bracing for the impact the U.S. faces of a potential trade war from recently imposed federal tariffs.On Feb. 1, the Trump administration announced plans to impose 25% tariffs<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7777","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t