How tariffs can affect the Siouxland area

SIOUX CITY (KTIV) - President Donald Trump has announced a 90-day pause on most of his recently-announced tariffs. But the president also raised tariffs on Chinese goods to 125%. As a result, stocks surged on Wall Street.

With tariffs all over the news recently, the following questions are coming up:

• What is a tariff?
• What can a tariff do?
• How can a tariff affect someone in Siouxland?

What is a tariff and what can it do?

The Tax Foundation, which describes itself as “the world’s leading nonpartisan tax policy nonprofit,” says a tariff is a “tax imposed by one country on goods imported from another country.”

When the government imposes tariffs on imports, businesses in the United States directly pay import taxes to the government on their purchases from abroad.

How did the 125% tariff on China happen?

Now, let’s get into the numbers. On Wednesday, April 9, President Trump announced China’s tariff rate would jump to 125%.

That followed China’s move to add an 84% retaliatory tariff on U.S. goods starting Thursday, April 10.

It all started with the president’s executive order, on Feb. 1, establishing a 10% tariff on all Chinese imports.

Then, on March 4, President Trump raised the baseline tariff on China by 10%, for a total of 20%.

On April 2, the president unveiled a 34% additional tariff on Chinese goods.

But after China countered with its own tariff, in the same amount on American products, the president added another 50% tariff.

Counting existing tariffs imposed in February and March, that took the total tariff increase on Chinese goods, during the Trump presidency, to 104%. Then, on April 9, the president announced on social media, the tariff on Chinese goods would go up to 125%.

That’s after China announced retaliatory tariffs against the U.S.

The impacts on Siouxland

Iowa agriculture

With retaliatory tariffs getting higher and higher in China, Iowa’s agricultural exports have a big chance of being impacted.

According to Iowa Economic Development, the state is the leader in corn exports with a $51 million increase in 2023. Corn exports in 2024, in total for the U.S. was $13.6 billion.

The Iowa Corn Growers Association’s website says one out of every three acres of corn planted in the U.S. is shipped out of the country in some form. The rest is used domestically.

The association says there is domestic usage for corn in terms of feed, fertilizer, feed fuel, and fiber, as well as in how farmers utilize products. They want to use more of Iowa’s products domestically to help use some of the excess supply seen worldwide.

The association’s president is concerned about the impact tariffs will have on the relationships built with other countries as the trade war continues.

“Not knowing what direction we are day-to-day or even hour-to-hour. It’s hard to judge,” said Stu Swanson, president of the Iowa Corn Growers Association. “But certainly from from a farm perspective, we count on the export market to provide that level of profit really that top third is where our profit comes from. And so we’re counting on that.”

Swanson added that it can impact rural Iowa. As finances are strained, he said Americans spend less in the communities. And, there are partners in the industry making layoffs, and reducing manufacturing seeing the “ripple effect”.

With soybeans, Iowa maintains the second top spot, accounting for 14% percent of U.S. exports.

China continues to remain the largest importer when it comes to U.S. soybeans but they are on the decline. With these new tariffs in place, that decline is more than likely to grow sharper.

The American Soybean Association says soybeans for China now face a tariff of over 114% percent.

Iowa also represents 34% of all pork exports as well, which increased in the U.S. last year. China is currently 5th overall in pork exports.

KTIV talked with officials at the U.S. Meat Export Federation. They stated the additional tariff from China would push the duty rate on U.S. pork to 131% and beef would now be tariffed at 106%.

Nebraska agriculture

Statistics from 2019, from Nebraska’s International Trade Office, show Nebraska exported $5.79 billion in agricultural products that year.

Products included: soybeans, beef, corn, pork, and wheat.

The state’s top customers include China, Japan, Mexico, South Korea, Canada, the European Union, and Taiwan.

Nebraska is also a top exporter of ethanol from corn, livestock feeds, corn meal, sugars and sweeteners.

The Nebraska Farm Bureau Federation says when you think about trade, ultimately this remains an agreement between two private companies.

“It is a company in the United States trying to sell a product to a company in China or vice versa. And so the country set up rules for trade. That’s what we’re seeing in the White House,” said Jordan Dux Senior Director of National Affairs for the Nebraska Farm Bureau Federation. “They’re trying to change rules for trade, but it’s still important to remember that this is still a private business transaction that takes place.“

With the ever-changing markets and rules, Dux said that makes it hard to predict how this will impact consumers.

“We haven’t seen those those tariffs completely. Chicken yet in terms of the products, right at the store, we haven’t seen that price increase yet, but we likely will see some of those and all that,“ said Dux.

He added that the Nebraska Farm Bureau Federation is hopeful the president can work through tariff negotiations soon.

Nebraska Congressman Adrian Smith, who’s the chairman of the Trade Subcommittee in the House Ways and Means Committee calls April 9’s developments a step forward in the trade negotiation process.

The price of shoes

Some products, like shoes, will likely not see an increase in pricing until the spring of next year.

The shoe industry buys products six to eight months in advance. New pricing on products won’t take effect until May or June of next year.

If they do see an increase Jim Edwolt, the owner of local shoe store Peak Performance, says the increase could be as little as $5 to $10 dollar.

You can read more about how tariffs can affect shoe prices here.

Effects on the local wedding industry

The bridal industry is made up of entrepreneurs, including, photographers, bridal shops, and florists.

When the tariffs go into effect, the wedding dress manufacturers will try to take a load of the cost but some of it will be passed down to the stores.

Bridal gowns take three to four months to make and it’s hard to find seamstresses in the United States.

The main source of designers comes from overseas, increasing the tariffs would increase the cost to make and import them back to the States.

Products currently in stores won’t see an increase in prices but as the need to replenish inventory comes up, that’s when consumers will begin to see price increases.

Katlyn Froistad, who owns First Look Attire in Sioux City, advises consumers to monitor the prices when shopping.

You can read more about how tariffs can affect shoe prices here.

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