Trump’s Tariffs: “Making America Great Again” by Making States Poorer

Canada’s New Laws and Their Impact on Six U.S. States: An In-Depth Analysis

USA-Canada trade relationship crisis as American tariffs conflict with two opposing North American trading partners, as an economic import and export dispute concept. Getty Images/wildpixel

Americans spend $900 billion a year on goods from Mexico and Canada. Tariffs could affect these prices the most.

The Trump administration’s 2025 tariffs, billed as a bold move to “Make America Great Again,” have triggered a wave of economic retaliation and hardship across the United States. Far from revitalizing American industry, these policies have unleashed a cascade of countermeasures, primarily from Canada, devastating key state economies, slashing incomes, and exposing the real cost of political brinkmanship. What follows is an in-depth, factual analysis of the financial and structural damage inflicted on six pivotal states, each now paying the price for what many economists and business leaders call a textbook case of policy incompetence.

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The Seven Canadian Laws: A Coordinated Counterstrike

Canada’s legislative response to escalating trade tensions with the United States includes:

• Digital Platform Tax: This tax targets U.S. tech giants by imposing new taxes on digital services, affecting companies like Google and Meta.

• Travel Safety Designation Act: Issues advising Canadians to avoid certain U.S. states, significantly reducing tourism.

• Import Sanitation Ban: This ban enforces stricter standards for U.S. meat and produce, leading to widespread rejections at the border.

• Energy Export Licensing Act restricts electricity exports to the U.S., requiring new licenses that favor countries with stable trade relations.

• Tourism and Media Shield Act: Halts federally funded promotion of U.S. destinations within Canada.

• Border Rights Protection Law: Limits cooperation with U.S. immigration enforcement and expands Canadian border security powers.

• Automatic Tariff Trigger: Mandates swift Canadian retaliation within 72 hours for any new U.S. tariffs.

The fallout from both Trump’s tariffs and Canada’s countermeasures is acutely felt in the following states. The table below summarizes the estimated state-level income losses attributed to the combined effects of tariffs and retaliatory policies in 2025.

Estimates are based on state-level tariff impact analyses and reported sectoral losses from January to May 2025.

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State-by-State Impact

1. Minnesota

• Law Impact: The Energy Export Licensing Act jeopardizes Minnesota’s hydroelectric imports from Manitoba, leading to a projected 15–20% spike in electricity prices. The Travel Safety Designation Act has caused a 31% drop in Canadian tourism, hitting local businesses hard. The Import Sanitation Ban disrupts iron, ore, and machinery exports, while the Digital Platform Tax affects Minneapolis-based tech firms.

• Financial & Other Effects: Higher energy costs threaten households and manufacturers. Tourism and tech sectors face sharp declines.

• Political Makeup: Minnesota remains politically competitive, with a Democratic governor and legislature as of 2025.

2. New York

• Law Impact: The Travel Safety Designation Act and Tourism and Media Shield Act have resulted in a 28% drop in Canadian reservations. The Digital Platform Tax is shrinking Canadian contracts for Wall Street firms. The Import Sanitation Ban delays or rejects billions in exports.

• Financial & Other Effects: Tourism, financial services, and export sectors suffer significant losses.

• Political Makeup: New York is a Democratic stronghold, with Democrats controlling legislative chambers and the governorship.

3. Iowa

• Law Impact: The Import Sanitation Ban has rejected pork, corn, and soybean shipments. The Energy Export Licensing Act has increased fertilizer prices and forced ethanol plants to cut output.

• Financial & Other Effects: Farmers face spoilage and lost markets; rural communities are seeing job losses and school revenue shortfalls.

• Political Makeup: Iowa leans Republican, and the GOP controls the governor’s office and both legislative chambers.

4. Texas

• Law Impact: The Energy Export Licensing Act has cost Texas refineries millions in lost Canadian contracts. The Import Sanitation Ban affects beef, citrus, and cotton exports. The Travel Safety Designation Act has slashed Canadian tourism by 35%.

• Financial & Other Effects: Energy, agriculture, and tourism sectors are all hit hard, with ripple effects across the state’s economy.

• Political Makeup: Texas remains a Republican stronghold, with GOP dominance in state government.

5. Michigan

• Law Impact: The Automatic Tariff Trigger targets Michigan’s auto industry, causing contract cancellations and rising costs. The Travel Safety Designation Act and Import Sanitation Ban have reduced tourism and blocked agricultural exports.

• Financial & Other Effects: The auto sector faces severe disruptions, border tourism is down over 40%, and agricultural producers lose access to Canadian markets.

• Political Makeup: Michigan is a battleground state, but as of 2025, Democrats hold the governor’s office and a narrow legislative majority.

6. Florida

• Law Impact: The Travel Safety Designation Act labels Florida a “tier 2 caution zone,” resulting in a 42% drop in long-term Canadian visitors. The Tourism and Media Shield Act has ended Canadian promotion of Florida destinations. The Import Sanitation Ban targets citrus exports.

• Financial & Other Effects: The tourism and citrus industries are in crisis, and cruise bookings from Canadian travelers have plummeted.

• Political Makeup: As of 2025, Florida is a politically divided state with a Republican governor and legislature.

Broader Implications

• Financial Fallout: Billions in trade, tourism, and investment are at risk across the affected states, with cascading effects on jobs, local economies, and public services.

• Political Tensions: The laws have deepened cross-border political divides, with states’ leaders calling for federal intervention and policy reassessment.

• Structural Change: The Canadian measures are designed to be long-term, signaling a fundamental shift in North American economic relations.

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Conclusion: The True Cost of “Making America Great Again”

· Trump’s tariffs, far from restoring American greatness, have triggered a costly trade war that is bleeding state economies and undermining the industries they were meant to protect. The administration’s approach has failed to deliver promised benefits and exposed American workers, farmers, and businesses to unprecedented hardship. At the same time, our trading partners, like Canada, have responded with precision and resolve. The result: a sobering lesson in the dangers of economic nationalism and the high price of political incompetence.

As the dust settles, the evidence is clear: “Making America Great Again” has come at the expense of the states and the people who can least afford it.

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