If the president imposes tariffs on various countries, some Americans might feel the effects of higher prices more than others.
Certain states rely on imported goods from these countries to a greater extent. Montana, for example, will feel the pinch of tariffs much more than New Jersey, as more than 90% of the goods it uses come from countries that could face tariff increases — compared with New Jersey, which relies on those imports at only 21%.
A new survey from LendingTree highlights the impact of geography on finances should the president impose tariffs on China, Mexico, and Canada. The key finding indicates that eight states — Montana, New Mexico, Vermont, Michigan, Maine, North Dakota, Oklahoma, and Wyoming — receive at least two-thirds of their imports from these countries. Conversely, four states — Hawaii, New Jersey, Maryland and Delaware — receive less than a quarter from them. This disparity could influence the prices consumers pay if costs rise.
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“The large majority of people expect that higher tariffs are going to mean higher prices for them. We also found that more people expect tariffs to negatively impact their personal financial situation than positively,” said Matt Schulz, chief credit analyst at LendingTree.
This negative impact may be more pronounced in states with lower median household incomes. When cross-referencing the LendingTree survey with Census Bureau data, states like New Mexico and Montana not only lead the nation in reliance on imports but also rank among the ten lowest in terms of median household income.
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“Energy was singled out for a reduced tariff of 10% because of how dramatic the impact would be for New England Ohio, and New York, along with some states that really depend on hydroelectric power,” said Daire Burke, director of Swoop North America.
Burke noted that the potential impacts could slow local economies, creating a double-edged sword for small businesses and consumers alike.
“One of the unfortunate downsides of uncertainty is people putting the brakes on investment decisions: starting companies, hiring people, and funding projects — all of which stimulate economic growth,” he said.
