MISSOULA — President Donald Trump announced new tariffs Monday on all steel and aluminum imports into the U.S. even as other tariffs for a broad range of goods are on hold.
These, and the tariffs imposed by other countries in response, could have major impacts here at home, especially on Montana’s agriculture, energy and manufacturing industries. But, how exactly will these tariffs actually play out on the ground in Montana? Like everybody else, Timothy Kanavel is not really sure.
“A lot of people are asking me that very question,” said Kanavel, who owns Kanavel Ag Supply in Potomac. “I got my own thoughts on it, but they don't carry much weight because there's too many unknowns yet. Once we know what's really going on in the bigger scheme of things, then I'd have an answer to that.”
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Since his business sells all kinds of farm machinery across the region and the world, tariffs have been on his radar. While he does not think they will hurt American industry too much, he is waiting to see what happens.
Here in Montana, research economist Derek Sheehan said tariffs could have big effects, especially when they first hit.
“In the state that trades quite a lot with Canada, this will definitely have a pretty large impact if it is enacted as as it was stated,” said Sheehan, an economist with the University of Montana’s Bureau of Business and Economic Research.
Prices could rise because of tariffs enacted by the U.S. and other countries. In addition to impacting industry, this could bring higher prices for things like gas or groceries. But, Sheehan said, this would not last forever and would not be a full 25% increase in prices.
“There will be some mitigation that will occur,” he said. “Markets will adjust and things will sort of wash out. But, how long that takes and how much it hurts, will be up to how quickly Montana can adjust to this new norm.”
In the meantime, Kanavel and many others are uncertain.
“I don't have a crystal ball and I’d helped me business-wise if I did,” Kanavel said. “I think, if anything, in the long run, it'll be better. To tell you the real truth, I don't know we're gonna see any of these tariffs actually play out. Again, that’s why I say I'll believe it when I see it.”
