Nathan Rich

President Trump’s tariffs stir preparation among local businesses.

Earlier this month, President Donald Trump declared a 10% tax on all imports from foreign nations unless a previously implemented tariff existed for the product or industry. Many fear what it may entail for New Orleans, a city heavily dependent on international trade. 

New Orleans companies across all sectors have been preparing for the predicted upheaval from these tariffs. Auto dealers, homebuilders and restaurants are all anticipating higher prices for consumers. 

Some are concerned that increased prices for raw materials will stall large industrial projects. Sen. John N. Kennedy, a Republican, warned Louisiana businesses of these tariffs, saying, “with tariffs, an eye for an eye just leaves both people blind.”

Many New Orleanians are particularly concerned with how these tariffs will affect Louisiana’s energy sectors. Currently, the Port of New Orleans is a major exporter of refined fuels, plastics and chemicals. However, it is likely that foreign countries will retaliate against Trump’s new tariffs by implementing taxes of their own on these goods, therefore decreasing Louisiana’s gross state product. 

Eric Smith, associate director of the Tulane Energy Institute, expressed concern about the long-term ramifications of Trump’s recent policies on the U.S.’s relationships with foreign energy-importing nations.

“My initial and continuing reaction is negative. Most energy economists agree with that assessment,” Smith said. “As an energy exporting state, what is problematic is the residue of distrust that will remain even after the tariffs have been reduced or removed.”

Scott Nolan, a political science professor of practice at Tulane, said he is worried that these new tariffs will disrupt the stability the U.S. has cultivated in its economic and trade policies. 

“More than 100,000 people in Louisiana have a close relationship to international trade,” Nolan said. “Any decline in trade, even a small decline, will create spillover effects that weaken corporate profit margins, lower pay for workers and most importantly increase prices of goods for consumers.”

Although it is still early to determine, some New Orleanians fear the potential consequences these tariffs will have on the city’s 2026 celebration of Mardi Gras. Historically, a majority of Mardi Gras throws have been imported from China. However, China was the target of some of the highest import duties, which therefore may limit the number of throws seen next year. 

Beyond Mardi Gras imports, foreign products such as wines, whiskeys, coffee, seafood, cheese and nuts are all also expected to undergo drastic price increases as a result of these policies. 

“Food, clothing, chemicals, raw materials, medicines, electronics, etc., will all get significantly more expensive. That’s not what I call making America ‘great’ again,” Nolan said.

As a major port city, this is not the first time New Orleans has had to modify its trading mechanisms in order to protect the city’s economy. One New Orleans local, Garrett Cantrelle, said that after witnessing the city’s traders adjust to the COVID-19 pandemic, he has confidence in their ability to adapt during these times of uncertainty. 

“Trade and the Port of New Orleans are huge in terms of the economy and culture of New Orleans,” Cantrelle said. “The traders will have to adjust their business models or trading techniques … but I know the people of New Orleans are resilient enough to get through this.”