Wyoming Consumers and Businesses Brace for Impact from New Trade Tariffs

The recent announcement of sweeping tariffs by President Donald Trump is expected to drive up costs for Wyoming consumers and small businesses, as new trade barriers increase prices on both foreign and domestic goods, Oil City News reports.

Economists and business owners in the state are already seeing the potential effects, with concerns about rising costs and economic uncertainty.

Ben Ellis, owner of 460 Bread, a bakery in Driggs, Idaho, that supplies stores in Thayne, Afton, and Jackson, Wyoming, is facing an unexpected financial challenge due to the tariffs. Ellis had planned a major investment in a heavy-duty dough mixer from the Czech Republic—equipment he spent over two years researching. Initially, the purchase was a strategic move to improve efficiency, but with the new 20% tariff, he now faces an unexpected import tax of approximately $30,000.

“For a little company, that’s a big risk,” Ellis said. “You have to plan it ahead. You have to get your capital right. You have to finance it correctly.”

Beyond the machinery, Ellis is also evaluating how tariffs may impact the cost of essential baking ingredients such as sugar, yeast, wheat, flax seed, salt, eggs, and olives. As price increases trickle down, grocery shoppers in Wyoming could see higher costs on everyday food items.

“I don’t think anybody’s immune,” Ellis said. “Everybody will experience higher costs.”

University of Wyoming economists note that while tariffs are often introduced to encourage domestic production, they also distort market dynamics by reducing competition. Sasha Skiba, an associate professor of economics at UW, explained that when tariffs are imposed on foreign goods, domestic producers frequently raise their prices as well, further increasing costs for businesses and consumers.

“The domestic producers will also increase their prices,” Skiba said. “Or they would be leaving money on the table.”

Jason Shogren, another professor at UW’s College of Business, echoed these concerns, explaining that tariffs disrupt free-market competition.

“You raise the price of an import, you lower the competition, and the whole free market works with competition,” Shogren said. “Now you have fewer sellers, and they have a little more market power over the consumer.”

While some retailers may initially absorb the increased costs, auto dealerships and agricultural producers are also expected to be affected.

At Teton Motors’ Subaru dealership in Jackson, auto salesman Jon Pinardi said some customers are starting to inquire about whether vehicle prices will rise due to tariffs. However, uncertainty remains high.

“We don’t have the foggiest idea,” Pinardi said. “We don’t know how it’s going to affect the pricing of vehicles going forward.”

Meanwhile, Theron Anderson, a fourth-generation farmer in Albin, Wyoming, sees both risks and potential benefits. Anderson supports efforts to bring manufacturing back to the US but acknowledges that tariffs could increase costs for farm equipment and fertilizer—many of which are currently imported.

Agricultural prices are already a challenge for farmers, Anderson noted. Wheat prices today remain below 1970s levels when adjusted for inflation, while the cost of farming equipment has skyrocketed.

“The prices are so depressed, I don’t know that they’ll see a lot of damage coming from the tariffs at this point in time,” Anderson said.

For businesses like 460 Bread, the uncertainty surrounding tariffs is forcing difficult decisions. Ellis had planned to invest in additional equipment from Japan to improve efficiency, but with the new trade policies in place, he has decided to cancel the purchase.

“Instead of having a piece of equipment that makes our products better and more efficient, we’re just not going to do it,” Ellis said. “We’re just going to be less efficient.”