Canadian leaders say they will cut off U.S. energy exports if President-elect Donald Trump imposes sweeping tariffs on Canadian goods.

It’s the latest in the back and forth with neighboring countries since Trump was elected, but what will the impact be on Minnesotans?

“We milk cows, grow beef, soybeans, corn, cannery crops,” said Randy Sorg at his legacy family farm in Hastings. He says proposed tariffs add uncertainty to an already volatile time.

“We have to be aware things might change in a hurry,” Sorg added.

President-elect Trump has threatened to impose a 25% tax on all products entering the U.S. from Canada and Mexico and other tariffs on imports of Chinese goods.

Sorg says that could drive down demand. “We need that export and if that isn’t an option, we will have too much supply. Our American agriculture, we export so much and it’s a big deal to us.”

Minnesota exports grew 17% in the second quarter of 2024 compared to a year prior, according to the Minnesota Department of Employment and Economic Development.

Canada and Mexico were the top two destinations, both increasing at least 40% year over year. China was third, with products ranging from medical equipment to oil to food byproducts.

University of Minnesota supply chain professor Kinshuk Sinha says the proposed tariffs on imports could lead to higher energy and construction prices.

“If we can have a strategy for the state, at least we can shave off some of the extra cost,” Sinha said.

As for farmers exporting goods, he points to government subsidies.

“I would be very mindful of providing support to our farmers… and then takes away a lot of the brunt of the pain,” said Sinha.

Sorg says they try to market proactively to lock in a profit, not knowing what’s ahead.

“We plant a crop, we raise our cattle and we’re optimistic things will be okay, so there’s always hope but there will be some bumps in the road, I believe,” said Sorg.