Tariffs threaten Idaho businesses

Almost $200 million of Idaho state exports are at risk from new tariffs imposed by the federal government, according to the U.S. Chamber of Commerce, which ranked the state at risk of “extremely significant damage,” its highest level.

Canadian exports, amounting to $103 million, include $19 million of room deodorizing material, $16 million in fungicides, and $15 million in seasonings. Chinese exports, amounting to $43 million, include $36 million in whey and modified whey products, $4 million in dried peas, and $2 million of milk constituent products. Mexican exports, amounting to $36 million, include $15 million in potato products, $14 million in cheese, and $3 million in iron and steel products. European Union exports amount to $9 million, $8 million of which is dried beans.

Tariffs have also been affecting imports of materials to the state.

Canada is Idaho’s largest trading partner, as well as the nation’s largest trading partner, according to the state Department of Commerce. Idaho exported goods worth $842 million to Canada in 2017, the department said.

The Department of Commerce contacted businesses and economic development partners in June, said Matt Borud, chief marketing and innovation officer.

“Idaho Commerce is here to be a partner, listen, and relay to our state and federal leadership the challenges the proposed tariffs may cause,” he said. “The situation is extremely fluid. In general, we have heard that prices, especially for resources such as metals, have been on the rise. These price increases are complicating expansion projects and fulfilling orders at prices quoted prior the tariff situation. The other challenge we hear is that some companies are experiencing issues with market access that were not as difficult as before the trade discussions.”