Could Trump’s tariffs damage Mississippi’s economy? Here’s what will cost more
President Trump’s administration implemented new tariffs on imports from some of the U.S.’s major suppliers and Mississippi consumers may feel the pinch.
Mexico, Canada and China have imposed retaliatory tariffs, further driving prices up on everything from peaches to iPhones.
Despite Trump’s allegations that neighboring nations continue to allow illegal drugs to enter at the borders, Canada, Mexico and China are the U.S.’s largest trading partners, according to ABC News. The U.S. depends on goods and items from these countries, and a new trade war has the potential to upend economic partnerships.
Tom Smith, an economist and professor of finance at Emory’s Goizueta Business School, told Fox5 Atlanta, “Businesses are going to pass as many of those costs on to consumers as possible.”
This could cause significant implications for Georgia’s economy. The Yale Budget Lab predicted that these tariffs could cost the average household up to $2,000 annually.
Potential price changes for Mississippi
The Federal Reserve Bank of Atlanta study suggests that if all costs from the import taxes are passed on to consumers, the price of retail purchases could increase by up to 2.6%.
The Mississippi Free Press warns Mississippians should brace for potential price increases on the following products.
Groceries:
Avocados
Coffee
Soybeans
Poultry
Corn and wheat products
Peanut butter
Orange juice
Wine, spirits and beer
Steel and aluminum
Sheet metal
Medical equipment
Automobiles and vehicles
Consumer goods
Laptops
Smart phones
Home appliances
Clothes and apparel
Gasoline
Impact on Mississippi Jobs
The new tariffs implemented by President Trump could significantly impact jobs in Mississippi, and the Peterson Institute for International Economics has some bleak projections.
Manufacturing sector: Mississippi companies like Hawke Industries could face a labor reduction due to increased costs for raw materials.
Retail and consumer goods: The Tax Foundation estimates that the tariffs could shrink economic output by 0.4 percent, which could lead to retail job losses.
Agriculture: Mississippi farmers, including poultry, soybean and cotton producers, could see diminished production and a labor force reduction.
Automotive industry: The auto and steel tariffs could slow the supply chain, potentially leading to job losses.
Mike McCormick, the president of the Mississippi Farm Bureau Federation, predicted a general slowdown in hiring and spending. Some negative trends have started to emerge in the recent announcements of layoffs at major employers like CNN, Macy’s and the CDC, along with pullbacks in planned electric vehicle battery plant projects.
Although all these predictions have yet to happen, it does seem certain that Mississippi can expect an economic downturn of some sort in the coming year.
What are your predictions for Mississippi in the upcoming year? Email me at srose@ledger-enquirer.com or find me on Instagram.
This story was originally published March 6, 2025 at 5:00 AM.
