University of Minnesota professor shares what's at stake for local businesses amid trade talks
New tariff rates are set to go live next month, but the effects on Minnesota small business owners could be felt in a matter of days.
From Minnesota Ice and All Energy Solar in St. Paul to Healthy for Life Meals in New Hope, tariffs are the talk of the town.
WCCO spoke with Paul Vaaler, a trade law professor from the University of Minnesota, about tariffs.
"That's the worst part, is the uncertainty that it creates," Vaaler said.
He says if the 3-month tariff ban lifts later this week, things could change fast.
"For Minnesota businesses, we should care a lot about three things, three countries, Canada, Mexico and China, as they are three of the biggest sources so far."
He's particularly worried about imported metals and all the Canadian fuel for energy, which could mean big problems for small businesses.
"They don't have the margins to eat that the stock, the credit line to hold them over," Vaaler said.
He says the worst case is "bankruptcy," and the best case "would be threats but not actual tariffs."
Vaaler says the best way to gauge impacts on small businesses will be to monitor bankruptcy court.
He says the overall Minnesota economy is in better shape because of the number of Fortune 500 companies located in the state.
