Trump’s Tariffs Hit Virginia’s Economy on Multiple Fronts

President Donald Trump’s renewed tariff policies in 2025 are rippling across Virginia’s economy, raising costs for families, farmers, manufacturers, and builders alike. With new tariffs of 25% on goods from Canada and Mexico (10% on energy), and 20% on Chinese imports, Virginia’s heavy reliance on international trade is turning into a vulnerability.

In 2024, Virginia imported $41 billion in goods while exporting $22 billion, much of it to nations now targeted by tariffs. Analysts warn the average Virginia household could pay an additional $1,200 to $2,000 annually due to higher consumer prices. These tariffs act as a hidden tax, particularly burdening sectors like agriculture and construction.

Agriculture: A Repeat of Past Pain

Virginia’s farmers are bracing for a repeat of the trade war fallout from Trump’s first term, when soybean exports to China plunged 98% and total production fell by 23%. Tobacco and forestry sectors suffered as Chinese buyers shifted to Brazil and Vietnam. With China still a key trading partner, tariffs and retaliatory measures could again undercut exports and farm income for the state’s 43,000 farms.

Adding to the strain are tariffs on Canadian fertilizers, which supply the bulk of U.S. potash and nitrogen. Higher input costs, especially during spring planting, are hitting producers when they can least afford it.

Construction, Manufacturing, and Ports Under Pressure

Tariffs are squeezing Virginia’s construction industry by increasing the cost of imported materials like lumber and drywall. Homebuilders warn that every $1,000 increase in home costs prices out nearly 4,000 households. Manufacturers, too, are feeling the pinch, with firms like Roanoke’s TMEIC facing rising costs on Chinese components, threatening margins and competitiveness.

At the Port of Virginia, one of the busiest in the U.S., trade tensions jeopardize shipping volumes and port-related jobs. Lower cargo throughput could ripple through trucking and rail sectors, threatening thousands of logistics jobs in Hampton Roads.

Consumers and Exporters Caught in the Crossfire

Tariffs on consumer goods mean higher prices on essentials like food, electronics, and vehicles. Virginia lawmakers and economists are warning of broader economic slowdowns. Retaliatory tariffs from Canada, Mexico, and China could further hit key Virginia exports, from tractors to printing equipment.

As global trade partners react, Virginia’s economy faces growing uncertainty. With no end in sight to the tariff standoff, industries across the Commonwealth are navigating higher costs, fewer markets, and greater instability.