Governor Tim Walz today sent a letter to President Donald Trump pressing the Trump administration to return tariff revenue that courts have ruled unlawful. As the state recognizes Agriculture Day, the Governor warned that the damage to Minnesota’s economy, particularly in agriculture, is deepening and will be difficult to reverse.
Financial stress is rising across rural Minnesota: 866 farmers entered debt mediation in early 2026, and farm bankruptcies across the Midwest rose 70% in 2025. As markets shrink, many farmers are operating at a loss. The taxpayer-subsidized, $12 billion “Farmer Bridge Assistance” handout Trump recently announced is a temporary bridge that, by current estimates, covers only about 30% of losses for many farmers this year.
“Minnesotans can’t afford Trump’s tariffs,” said Governor Walz. “Families are paying more for groceries, farmers have been pushed toward bankruptcy in record numbers, small businesses have seen business dry up, and the manufacturing sector continues to shed jobs. These weren’t just bad policies – they were unlawful, and Minnesotans deserve every dollar back.”
According to the U.S. Congress Joint Economic Committee, tariffs imposed between February 2025 and January 2026 increased costs for American households by roughly $1,745 each. In Minnesota’s approximately 2.4 million households, that totals more than $4.1 billion. The Federal Reserve Bank of New York reports that 90% of these tariff costs were absorbed by U.S. businesses and consumers.
The Governor warned that the long-term economic damage may be even more severe. Minnesota’s farmers, who export $8.3 billion annually, are losing access to global markets. U.S. soybean exports have fallen from 47% of global market share in 2018 to 24.4% today, while competitors in South America have gained ground.
“Farmers don’t want bailouts to replace functioning markets,” Walz said. “They want stability, reliable trade relationships, and the ability to compete. Right now, they have none of those.”
Tariffs are also raising costs across the broader economy. Minnesota imports roughly $40 billion in goods annually, and retaliatory tariffs have driven up prices on groceries, construction materials, electronics, and critical farm inputs. Tariffs on Canadian energy have also contributed to an estimated 5% increase in gasoline prices, adding further strain on family budgets.
Following the Supreme Court’s ruling that the President lacked authority to impose these tariffs, Governor Walz joined 19 governors in urging Congress to pass legislation such as the Tariff Refund Act of 2026 to return unlawfully collected tariffs to families and businesses.
The Governor’s full letter, urging the White House to quickly develop and implement a plan to return tariff revenues directly to Minnesota households, farmers, and businesses, is available here. The Governor also proclaimed March 24 as Agriculture Day, highlighting the vital contributions of agriculture and agricultural workers to the state.
