At a time when the Republican Party is fighting for life under an unpopular president, an economic analysis reveals the red state of Missouri is looking at serious problems as President Donald Trump escalates his prolonged trade war between the U.S. and Canada, according to the Kansas City Star.
Trump may have tried to change the name of Lake Ontario to “Lake America” in his latest sleight to Canada, but there’s nothing symbolic about the impact of the 50 percent tariffs the Trump administration levied on $20 billion worth of Canadian goods. There’s also nothing symbolic about the pain of the retaliatory tariffs Canada plans to impose on roughly 700 American products beginning Sept. 8.
“The Kansas City metro area exports about $4 billion in goods to Canada annually, including vehicles, plastics, chemicals and agricultural products," according to a 2025 study by the Canadian Chamber of Commerce.
“Any variation in tariffs may be sensitive,” said Ariel Dvoskin, who studies trade theory and teaches economics at the University of Missouri Kansas City, “and the [50 percent] variation that we are talking about right now … would substantially affect the exports from KC.”
Dvoskin pointed out that a whopping 37 percent of Kansas City’s exported goods go to Canada, which puts this Trump-voting state in a nasty bullseye. “When you increase tariffs, of course, those who suffer first are workers because prices go up and their real wages go down," Dvoskin said.
The Canadian Chamber of Commerce study identified Kansas City as one of the U.S. cities that would take the hardest hit in a trade war between the North American allies, with Kansas City the third-most vulnerable city in a prolonged trade dispute because of its dependence on Canadian demand.
The info was based on 2023 data, but Andrew DiCapua, the chamber’s principal economist and the study’s author, told the Star that the results still apply today.
“Kansas City really is at the center of this trade war,” DiCapua said. “ … It raises costs for businesses. I mean, someone needs to pay for this. Even if it’s not passed on to consumers right away, someone still needs to pay for the tariffs. So smaller businesses that rely on these supply chains are going to have to eat those costs.”
Frank Lenk, director of economic research at the Mid-America Regional Council, told the Star that Kansas City’s auto industry is among the clearest targets because vehicles are one of the region’s largest exports and much of that trade is tied to Canada. Lenk added that Trump’s trade war can also hike manufacturing costs for companies like Ford and General Motors because parts and materials move back and forth across the border before final assembly.
They can either absorb those costs and threaten their financial integrity and workers or pass the costs down to customers in a colossal wallop.