(KIWA Staff Photo)Iowa (RI) — Iowans are already paying high prices for gasoline and groceries, and new tariffs on Canadian goods could push costs even higher on items ranging from alcohol to auto parts to lumber.
Iowa Senator Chuck Grassley says trade talks between the U.S. and Canada collapsed over the weekend. Canada responded to President Trump’s tariff threats with a dollar-for-dollar duty on U.S. goods. The talks fell apart Friday night, and the tariffs took effect Saturday.
Grassley says President Trump imposed a 50% tariff on roughly $28 billion worth of Canadian goods. He expressed concern that the 2020 United States-Mexico-Canada Agreement (USMCA) is being left behind.
President Trump used harsh language in a Truth Social post on Monday, writing: “The U.S.A. will always be far bigger, richer, and stronger than Canada. Someone should get these clowns to ‘fall in line’ or, the consequences for Canada will be far WORSE!”
Grassley says that tactic could be harmful.
Reports show Iowa businesses ship more products to Canada than any other country. Iowa exports nearly $5 billion in goods to Canada each year and imports more than $3 billion. Mexico is Iowa’s second-largest trading partner.
