By Andi Anderson
Tariffs introduced by the Trump administration are creating widespread concern among Iowa businesses, with rising costs and economic uncertainty affecting industries across the state. From manufacturing and farming to bridal shops and restaurants, the impact is being felt in multiple ways.
Farmers like Tony Thompson from Elkhart say input costs are climbing and markets remain unstable, making long-term planning difficult. “It’s tough to know, it’s tough to make investments,” he said, warning that current policies could lead to another farm crisis similar to the 1980s.
Manufacturers such as John Deere are also facing challenges, with steel and aluminum tariffs raising material costs and leading to potential layoffs. “That cuts into profits,” said University of Iowa economics professor Anne Villamil. “The response is often layoffs.”
Small businesses are being squeezed too. The owner of Critical Hit Games, Chance Kirchhof, noted that rising supply costs are passed down the chain, ultimately impacting customers. Bridal shops, where most gowns are sourced from China, are seeing price surges of up to 35%.
Restaurant owners are struggling with food and supply costs, putting added stress on an already thin-margin industry.
Eco-friendly product maker Eco Lips is bracing for a 30–50% increase in raw materials like shea butter and coconut oil. Founder Steve Shriver warned, “My $3 lip balm is going to be $5 to $6 in the next year or two.”
Healthcare isn’t immune either. Nurse Christopher Crossett said tariffs are “especially reckless” for rural hospitals already on tight budgets.
Even Des Moines retailer Mike Draper of Raygun said a 10% price increase on raw T-shirts could cost his business $200,000 annually.
Across Iowa, the message is clear: the tariffs are causing real and growing economic pain.
Photo Credit: gettyimages-zoran-zeremski
Categories: Iowa, Business