State officials say exports of goods from Minnesota to other countries dropped 6 percent in the first quarter of this year, compared to the same period in 2024.
The Minnesota Department of Employment and Economic Development is attributing that — at least in part — to the Trump administration’s tariff policies.
“On-again, off-again tariffs issued unilaterally by the Trump administration continue to cause significant uncertainty and concern for Minnesota companies in planning their business strategies, including importing and exporting,” DEED Commissioner Matt Varilek said in a news release.
“This quarter, Minnesota saw exports fall to Canada and Mexico, illustrating the risks posed to our state if the federal government wages a trade fight with our two biggest trading partners,” Varilek said. “We are closely tracking these developments and working with our business community to attempt to manage the impact of tariffs and potential countermeasures from our trading partners.”
Minnesota exports totaled about $6.3 billion in the first quarter.
Elsewhere, Iowa and South Dakota also saw exports drop in the first quarter. Wisconsin and North Dakota saw exports increase. Nationwide, exports rose 3 percent in the quarter.
President Donald Trump has advocated for tariffs as a way to protect and boost American companies and workers, by bringing production of goods back to the U.S. and giving the country leverage in trade negotiations.
Economists say tariffs led to higher prices for American customers, and can raise costs for U.S. manufacturers that rely on imported raw materials, components and equipment. Trump’s imposition of tariffs faces ongoing legal challenges.
Minnesota economic officials said exports of products from the state to Canada dropped 3 percent in the first quarter of 2025, and exports to Mexico were down 16 percent. That was partly offset by greater trade to the Middle East and the United Kingdom.
Exports of cereal grains, including corn and wheat, dropped 63 percent in the quarter, compared to the same period in 2024. Exports in the vehicle, and optic and medical goods sectors also dropped. Global sales of other grains — including soybeans — as well as dairy and eggs were up.
The Associated Press contributed to this report.
