As threat of Trump tariffs looms, DeKalb County businesses brace for impact

For some in DeKalb County, homeownership was only possible through Habitat for Humanity.

But come March 1, if costs rise as expected on imported items such as lumber needed to build homes, those efforts to make housing more accessible to DeKalb County residents could be thwarted.

An expected 25% tariff, or tax increase, on imported Canadian lumber could spell trouble for Habitat for Humanity, Executive Director Kim McIver said.

”With soft wood lumber coming from Canada and material needed to make drywall coming from Mexico, those costs are passed down to our affiliate,“ McIver said. ”Habitat for Humanity of DeKalb County relies on the support of our donors, and if we are facing increased costs, that means we will need to find additional donors to help cover the cost, which is easier said than done.”

In January, President Donald Trump announced plans to increase taxes on goods and services imported from the country’s largest trading partners: Canada, Mexico and China. That plan was paused for 30 days as negotiations continue.

More expensive lumber would be detrimental to housing affordability and “increase the cost of construction and discourage new development,” Carl Harris of the National Association of Home Builders said this month.

In May, Habitat for Humanity welcomed the Gonzalez family, formerly of DeKalb, into a new home in Kingston. And in October, the agency moved its 18th home built in DeKalb County, a historic farmhouse, from Sycamore to DeKalb, for Heaven Allen and her son.

McIver said she fears tariffs would hinder the community’s efforts to address affordable housing.

“If we aren’t building or building at a slower pace, then we will be unable to meet the demands of the lack of affordable housing in our community,“ McIver said. ”[It’s] something that we, here at Habitat, would like to avoid if at all possible.”

As Trump’s tariff deadline approaches, DeKalb County-area business owners said they’re bracing for impact. Business between the North American nations totaled $1.8 trillion in 2023, The Associated Press reported. That is far greater than the $643 billion in commerce that the U.S. did with China the same year.

Tariffs are expected to affect significant production markets across the country, including northern Illinois. Canada is the state’s largest trading partner.

Industrial manufacturers that rely on steel for their own trades or automobile production could see heavy cost increases. And for consumers, prices at the gas pump; in car showrooms; and for items such as computers, cellphones, toys, clothing and grocery and household goods could increase.

Jon Bockman, owner of Bockman’s Auto, Truck and Tire in DeKalb and Sycamore, said auto repairs could be more costly. And that’s on top of what he said was already ballooning costs in his line of work.

“There’s still supply/demand issues,” Bockman said. “There’s still [a] labor shortage. Technology has gotten more expensive that we need more of it for the shops, and then they lay the tariffs on top of it. It means everything’s going up. We probably saw an increase last year and the year before that. It’s just, at some point, you hope it’s got to stop.”

Ruben Perez, president at Tom Sparks Auto in DeKalb, said his shop doesn’t normally pass supply price effects on to customers. But tariffs could change that.

“Basically, the American consumer will be stuck with a 25% markup,” Perez said. “Because there isn’t a big markup on that, you have to pass it on to the consumer.”

Perez said he fears for retaliatory tariffs from Canada and Mexico as a result and called for better diplomacy.

Colin Kuehl, a political science professor at Northern Illinois University, said people who will feel the most affected by higher taxes on imports likely already are pinching pennies.

“Uncertainty is bad for business. This constant back and forth of, ‘What’s he going to do?' which I think it part of Trump’s political brand ... in some ways can make him an effective politician, but it’s bad for business,” Kuehl said. ”It’s hard to make long-term business decisions when you don’t know your cost in a few months on a key supply you’re importing.”

On Feb. 12, new data released by the U.S. Labor Department showed that inflation, especially prices of groceries, gas and used cars, worsened in January.

Kuehl said the reason the U.S. buys goods from China, Mexico and Canada is because those countries can produce them at a lower cost than at home.

“A lot of companies around here rely on those imported goods like imported steel and aluminum to produce what they make, whether that’s automobiles or beer or anything like that,” Kuehl said. “So that makes it harder for them to compete and could have potential consequences on jobs.”

Tariffs aren’t a new concept, and it’s not the first time Trump or other presidents have wielded that economic power to pressure other countries. Trading leaders such as Canadian Prime Minister Justin Trudeau already announced plans to retaliate with their own tariffs.

“What China has done during the first Trump administration and what Canada plans to do is most of their tariffs are targeting Trump-supporter territories,” Kuehl said. “Unfortunately for us, that’s soybeans and corn – things that are a big part of the economy around here.”

In DeKalb, Martin Garcia said he’s pledged to keep his customers' needs first. He owns DeKalb Fresh Market, 615 Oak St., and as of this week, he said he doesn’t plan to increase prices for his inventory.

Garcia recently joined dozens of business owners across DeKalb County for a “Day Without Immigrants” protest, meant to push back against Trump ordering mass deportations and targeted attacks on immigrant communities.

“He’s trying to make American people pay the price,” Garcia said. “He’s using immigrants as [an] excuse to make Americans pay the price to get it.”

On Barber Greene Road in DeKalb, School Tool Box organizes school supply distribution for hundreds of local children yearly.

School Tool Box CEO Doug Stice said he doesn’t think his company will feel quite the effect that others might if imports are taxed more.

“A lot of purchases have already been made,” Stice said. “They may be on a boat on their way here, but they were purchased quite some time ago. So, those prices were locked in and not impacted by the tariffs.”

But he’s had to change plans for the company’s suppliers north of the border in Canada, where social media calls already have taken hold to boycott American products amid threats of a trade war.

“I’ve asked that they speed up the delivery, to go ahead and deliver a lot earlier than I need them to, but to avoid any potential price increase,” Stice said.

Stice said School Tool Box’s customer prices for 2025 are the same as 2024.

“We are pretty well ahead of all that,” Stice said. “We start pretty early in the process, and the tariffs shouldn’t impact us this year. Now, that doesn’t mean next year there won’t be an impact, but we’ll see where that all ends up.”

David Ruiz, owner of Sycamore Auto and Truck Repair, said that although his shop is stocked now, he worries that whenhe has to resupply inventory, he’ll feel the most effects.

“From what I understand, the parts prices are all going to go up,” Ruiz said. “Nothing is made in America anymore, man. Probably like 70%, 80%, maybe even as high as 90% of the [stuff] that I buy is overseas made.”

Kuehl said consumers should know its not as simple as converting production back to American-made only.

“I get the appeal; I try to buy local when I can,” Kuehl said. “But the reality is if everything was made in America, even this country, which has so many resources and so many people, things are going to be way more expensive than if we trade.”

The Associated Press contributed to this report.