What could the tariffs on Canada, Mexico mean for Utahns?

SALT LAKE CITY (ABC4) — With incoming tariffs scheduled to go into effect on March 4, political and business leaders in Utah are looking for ways to minimize the impacts.

After accepting initial concessions from Canada and Mexico, President Donald Trump announced Monday that the 25% tariffs on the States’ neighbors would go into effect on March 4, in addition to increasing tariffs on China to 20%.

The World Trade Center in Utah said it is in touch with entrepreneurs and policymakers on how the tariffs may impact the Beehive State.

“Twenty-five percent of jobs within the state rely on international trade… which equates to about 433,000 jobs in Utah,” John Freedman with the World Trade Center told ABC4.com. “That’s significant.”

In a February fact sheet from the White House, the Trump administration said the tariffs are being imposed “to hold Mexico, Canada, and China accountable” for preventing illegal immigration and stopping fentanyl and other drugs from coming into the country.

“Tariffs are a powerful, proven source of leverage for protecting the national interest,” the White House said. “President Trump is using the tools at hand and taking decisive action that puts Americans’ safety and our national security first.”

The tariffs are expected to impact automobile, agricultural, technology, and crude oil imports — which would likely lead to higher grocery prices and higher prices at the gas pump, the Associated Press reports.

Experts say companies will handle the cost, or they’ll pass it on to the customers. But with the push to manufacture in the United States, diversifying suppliers may be a challenge for Utah companies.

“We’re a state built up of small and medium-size companies… there’s pros to that: We’re resilient, we’re innovative, we’re industrious, we’re nimble,” Freedman said. “But on the flip side, we’re uniquely susceptible to things like tariffs, where we don’t have large companies that can deploy capital and bring manufacturing onshore quickly. That’s hard for us to do.”

Car dealerships in Utah say that the worst case scenario could be a $4,000 to $10,000 increase on a new car purchase.

“Parts are shipped back and forth before they’re installed… they go back and forth over borders, so trying to manage that would be extremely difficult,” Mike Kistemaker with Ken Garff Automotive Group told ABC4.com.

Kistemaker said certain cars are more affected than others, such as small SUVs and compact cars. He said a lot of Honda vehicles are built in the U.S., but some of the company’s “best sellers” — like Civics and CRVs — are built in Canada, so they would likely be impacted.

On the national level, U.S. stocks plummeted on Monday after President Trump confirmed the tariffs would be imposed. Experts say it will take some time to gauge the full effects of the tariffs, but business will continue.

If you have your own business in the state and want help or insight on how to move forward, you can contact the World Trade Center.

The Associated Press contributed to this report.