ICYMI: Tennessee Businesses & Farmers Sound Alarm on Over $8 Billion in New State Tariffs at Town Hall

Nashville, TN — Yesterday, at a Tariff Town Hall held in Nashville, Tennessee, local business owners, farmers, and community discussed the implications of newly imposed tariffs on their bottom line and the state's economy. The event was put on by Farmers for Free Trade and hosted by Ole Smoky Distillery, helping to highlight the impact of tariffs on the state's vital spirits industry. In conjunction with the event, Farmers for Free Trade released a new Tennessee Tarifflation Report on precisely how tariffs will raise costs for farmers, businesses, and manufacturers in Tennessee.  

MEDIA COVERAGE:

WSMV 4 - NBC: Tennessee farmers voice concerns over the impact of tariffs on groceries 

“It’s gonna raise our price and decrease our revenue which is not a good thing,” Jimmy Tosh a row crop and pig farmer said, “Anything that increases cost that the consumer is going to have to buy, they should be concerned about. And I definitely think we’re going to see some price increases in the store.”

“In Canada in each of the ten provinces they’ve taken American spirits off the shelves in retaliatory action, which seems very disproportionate,” Robert Hall, CEO of Ole Smoky Distillery, said, “Our business is very materially effected at the moment and we’re very concerned.”

WKRN - ABC: ‘We are talking big money’: Tennessee farmers and business owners discuss tariffs

Some Tennessee farmers and business owners told News 2 that President Trump’s new tariffs could cost them billions. On Thursday, community members gathered at Ole Smokey Distillery to discuss their concerns and explain how these extra taxes could impact Tennesseans.

“We are talking big money,” Dr. Steven Livingston, an MTSU Professor of Political Science and International Relations, said.

“They are going to take American products off the shelves,” CEO of Ole Smoky Distillery, J. Robert Hall, said. “Our sales to Canada evaporated on Tuesday.”

FOX 17 News: Tennessee Farmers Express Frustrations Over Tariffs 

"The market really tanked in the last two weeks just because of the threat of tariffs being put on," Tosh said. "The uncertainty is really the big driver right now."

Tosh, who grows corn and soybeans and raises hogs, also pointed out that farmers could see increased costs for essentials like fertilizer, equipment, and vitamins, which would ultimately lead to higher prices for consumers.

"The answer is clear—free and fair trade," Tosh said. "It's good for all countries if we're able to trade freely."

Tennessee’s Tariff Burden is Set to Skyrocket

The newly released report from Farmers for Free Trade and Trade Partnership Worldwide data paints a concerning picture for Tennessee businesses:

Canada, Mexico, and China account for nearly a third of Tennessee’s $111 billion in total imports in 2024.

Additional tariffs on Canada and Mexico would significantly disrupt trade, as imports from these countries into Tennessee faced just $82 million in tariffs on $21 billion in imports—a historically low effective tariff rate of 0.39% under the U.S.-Mexico-Canada Agreement (USMCA).

By contrast, Tennessee companies paid $1.5 billion in tariffs on imports from China in 2024—more than from any other country—due to an average tariff rate of 11.2%.

Tennessee imported $775 million worth of steel and aluminum products in 2024, which could be subject to significant Section 232 tariff increases.

Altogether, the new measures could cost Tennessee over $8 billion annually. For context, the state paid only $2.6 billion in total tariffs on all imports in 2024, meaning the new tariffs could push total tariffs to over $10.6 billion, nearly quadrupling the total tariff burden from the previous year.

Of all U.S. states, Tennessee would be paying the eighth-highest amount in new tariffs.

Tennessee exporters are also at risk, with industries such as whiskey, baked goods, and automotive manufacturing particularly vulnerable to retaliatory tariffs from key trading partners.

Event Highlights:

New Tariff Data Released: Trade Partnership Worldwide presented an analysis indicating that the latest round of tariffs on imports from Canada, Mexico, and China could cost Tennessee businesses over $8 billion annually, a massive increase from previous tariff levels.

Panel Discussions: Speakers included:

Dr. Steve Livingston, Professor, Middle Tennessee State University

Jimmy Tosh, CEO, Tosh Farms

Robert Hall, CEO, Ole Smoky Distillery

Matt Millsap, President and Founder, Build Co. Seven, a Nashville Construction Company