STATE

How will Trump tariffs affect Oklahoma? These industries may see greatest impact

Portrait of Dale Denwalt Dale Denwalt
The Oklahoman

The effects of sweeping tariffs announced by President Donald Trump could ultimately touch every Oklahoma industry that relies on products from other countries.

In all, Oklahoma buyers receive products from 142 nations and territories from around the world.

The tariffs range from a minimum of 10% on countries like Australia, to 50% on the African nation of Lesotho and the French territory of Saint Pierre and Miquelon, which is located near Canada.

Oklahoma's biggest trading partners are Canada, Mexico and China, which Trump has targeted directly with import tariffs. Trump said Canada and Mexico would be exempt from Wednesday's so-called reciprocal tariffs as he negotiates previously levied tariffs. More than $5 billion worth of crude oil passes through Oklahoma from Canada, more than half a billion in miscellaneous manufactured commodities comes from China, and a wide range of products originate in Mexico.

While this is not an exhaustive list, it shows how significant global trade is in Oklahoma's economy.

Energy production and transport

In February, Trump reinstated a 25% tariff on steel that he implemented during his first term. He also increased aluminum tariffs to 25%.

As of 2023, Oklahoma imported more than $245 million worth of steel, iron and steel products from other countries, according to international trade data collected by the U.S. Census Bureau.

This will likely impact operations of oil and gas producers, along with midstream companies that rely on metal for pipelines and storage.

Aerospace manufacturing

As one of Oklahoma's largest industries, aerospace will be affected. Oklahoma imports more than half a billion dollars worth of aerospace products and parts each year.

Another $270 million was spent in 2023 by Oklahoma companies on high-tech equipment that includes navigational instruments, according to publicly available trade data.

The industry will also likely feel the pinch from aluminum tariffs.

Food production and retail

Nearly $184 million worth of food, livestock and other related products entered Oklahoma from other countries.

The biggest trading partners here include Thailand, which provides food for livestock and pets; and meat and meat packaging products from both New Zealand and Australia.

Manufacturing

Many raw or semi-processed materials needed to manufacture goods in Oklahoma come from sources outside the United States.

One of the largest line items in Oklahoma's import portfolio is plastic products from China. In 2023, Oklahoma imported $133.4 million worth.

Oklahomans also buy $882 million worth of industrial, metalworking, service industry and agriculture machinery from 66 countries.

Automobiles

Trump also implemented a 25% tariff on all automobiles manufactured in other countries.

Most of Oklahoma's automobile and vehicle parts come from Canada and Mexico. Nearly $123 million worth of automobiles are imported from Mexican manufacturers, and another $25.8 million from Canada.

A significant share of vehicle parts are shipped from Taiwan, China, India and South Korea.

General consumer goods

Like with other imported products, most of Oklahoma's general retail merchandise comes from manufacturers in Mexico and China, with significant imports from Canada.

Outside of those three countries, South Koreans provide Oklahoma with $2.68 million worth of household appliances.

When it comes to clothing, Oklahoma companies import nearly $50 million worth of apparel from Bangladesh. Furthermore, China, Egypt, Nicaragua and Madagascar each provide over $10 million worth of clothing to Oklahoman retailers.

Aside from China, Oklahoma's biggest source of footwear made internationally is Vietnam with $5.3 million in imports.