South Dakota’s top exports, including alcohol, starch, pork, and bandages, are at risk of being affected by tariffs, according to experts. With Canada, Mexico, and China being the top three countries receiving South Dakota goods, the state’s $2.4 billion export industry could face uncertainty due to potential tariff implementations.
Professor Reynold Nesiba explains that tariffs are taxes on imported goods, which could lead to increased costs for consumers depending on market power. Consul General Beth Richardson of Canada highlights the interconnectedness of the economies between South Dakota and Canada, with $1.1 billion worth of goods being exported to Canada.
The impact of tariffs could also affect oil prices, as Canadian oil plays a significant role in US refineries. Chief Economist Gilbert Garcia Vasquez warns of potential inflation, unemployment, and negative effects on the US economy if tariffs are imposed.
Experts warn that continued trade disputes could lead to market disruptions and stock market fluctuations. Canadian officials emphasize the importance of free trade within North America for economic prosperity. With uncertainty looming, the hope is that detrimental tariff actions will be avoided to prevent further damage to the economy.
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