CA, US & World
Trump Tariffs Put Farmers and Consumers on Edge as Inflation Holds
Inflation remained elevated in July as President Donald Trump’s trade policies continue to create uncertainty for consumers, businesses and farmers.
The government’s latest economic report showed inflation holding at 3.7% last month, unchanged from June, while the cost of goods increased.
At the same time, the United States and Canada are engaged in an escalating trade dispute involving tariffs on billions of dollars in goods crossing the border.
U.S. Trade Representative Jamieson Greer downplayed the potential impact on American consumers, saying the latest tariffs affect a relatively small share of overall U.S. consumption.
But states that conduct significant trade with Canada could feel a greater impact.
Illinois, for example, exports roughly $18 billion in goods to Canada, according to federal data. The state imports substantially more from Canada, according to state officials.
University of Illinois professor Robert Bruno said tariffs could increase costs for households while putting manufacturing jobs at risk.
“For every 1%, we would likely see costs go up per household, roughly $300,” Bruno said.
The trade tensions come as the administration is also trying to address high beef prices. Trump has paused beef imports for 90 days and promised to bring prices down.
That move has angered some U.S. cattle ranchers, who argue the market should be allowed to correct itself.
Drought and shrinking cattle herds have contributed to higher beef prices. Some Republican lawmakers representing agricultural states are also questioning whether increased imports will actually help consumers.
Sen. Mike Rounds, R-South Dakota, said he does not believe the policy will lower beef prices and warned that overseas beef could replace some U.S. beef purchases.
Deb Sagvold, co-owner of Sandhills Family Farm, said the move feels like a betrayal to American ranchers.
“It’s not helping American ranchers because you’re not rewarding anyone in the country for raising beef when you’re going outside the country to buy it,” Sagvold said.
The economic debate comes with the midterm elections just over two months away. States with major agricultural industries and significant trade with Canada, including Wisconsin, Ohio and Texas, could be particularly important in the political fight over prices and trade.
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By: NBC Palm Springs
August 26, 2026
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