September 5 Iowa Economic Round-up: Tariffs are killing jobs, raising prices
Iowa’s economy has been ranked the worst in the country. President Trump’s own Bureau of Labor Statistics puts Iowa 49th in economic growth and 48th in personal income growth. Even Republicans concede Iowa’s is in a “recessionary economy.” Leaders at the Federal Reserve have warned that Iowa’s economy is particularly vulnerable to Republican tariffs and ongoing trade disputes.
While the national economy added only 22,000 jobs in August, here’s what Iowans have been reading this week:
Radio Iowa: Creighton survey shows tariffs are slowing economy, undermining confidence
“The survey shows weakening confidence about the future, as Goss says only one in ten supply managers expect improving economic conditions for their firm over the next six months. The survey showed employment losses for the region during August for the fifth straight month, as Goss says the Producer Price Index for the month rose.”
Des Moines Business Record: Iowa Exports decline 10.8% YoY
“Creighton’s latest survey continues to reflect job losses across the region, accompanied by elevated wholesale inflation,” Ernie Goss, director of Creighton University’s Economic Forecasting Group and the Jack A. MacAllister chair in regional economics, said in a press release. “Supply managers reported weakness in both imports and exports along with higher prices for imported goods.”
Cedar Rapids Gazette: Iowa income tax revenue dips 18.6% in July and August, largely from tax cuts
“At the end of the 2025 legislative session, Republican leaders agreed to spend more than $9.4 billion on the next state budget, including dipping into some reserve funds.
The state’s new fiscal year started July 1.
The budget exceeds the $8.5 billion the state is projected to collect in revenue, according to the Iowa Revenue Estimating Conference’s projections at its regular quarterly meeting in March. That number was down by $218 million from its projections in December.”
KCRG: Iowa faces 40,000 child care slot shortfall, state data shows
“Affordability and making daycare jobs more attractive are among the biggest barriers facing the child care industry today, according to Child Care Resource and Referral of Northeast Iowa Regional Director Mary Janssen.
“Like many nonprofits, what’s always been tough is the pay,” says Janssen. “It’s still not to that rate that we can compete with, or attract people, when other young adults are going to the private sector.”
New York Times: John Deere, a US Icon, is undermined by Tariffs and Struggling Farmers
“…The company reported a record profit two years ago, but President Trump’s tariffs and trade policies are making the market more challenging and unpredictable for the business and its customers.
One of the country’s largest manufacturers is worse off now than it was six months ago. Last month, John Deere said net income in its most recent quarter was down 29 percent from a year earlier. Higher tariffs, primarily on steel but also on aluminum, have cost the company $300 million so far, with nearly another $300 million expected by the end of the year. This summer the company laid off 238 employees across factories in Illinois and Iowa.”
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