Economic conditions in Nebraska and Iowa in 2025 show signs consistent with recessionary pressures, and ongoing tariff policies under the current administration are widely regarded as exacerbating economic challenges in these agricultural states.
Republican Congressman: "What we're seeing is basically a recession economy in Nebraska and Iowa right now, and tariff wars do not help

Tariffs in the second Trump administration - Wikipedia
Source: en.wikipedia.org
Key Evidence
The average applied US tariff rate increased significantly during early 2025 under President Trump's second term, impacting trade-sensitive sectors.
en.wikipedia.orgen.wikipedia.orgTariffs in the second Trump administration
Nebraska lawmakers have publicly acknowledged economic challenges during the 2025 session, highlighting concerns about tariffs and their effects on local economies.
nebraskaexaminer.comnebraskaexaminer.comNebraska lawmakers reflect on 2025 session, look ahead to 2026 • Nebraska...
What the Evidence Shows
The statement by the Republican Congressman that Nebraska and Iowa are experiencing a 'recession economy' aligns with recent reports indicating economic difficulties in these states during 2025. Both Nebraska and Iowa have economies heavily tied to agriculture and manufacturing, sectors sensitive to trade policies and tariffs. The reintroduction and increase of tariffs under President Donald Trump's second administration, which began in January 2025, have raised costs for imported goods and disrupted supply chains.
This has contributed to inflationary pressures and reduced competitiveness for local producers. Lawmakers from Nebraska have reflected on the 2025 legislative session expressing concerns about economic headwinds, including those related to trade tensions. While the term 'recession economy' is somewhat qualitative, the economic indicators and political commentary support the Congressman’s assertion that tariff wars are not helping the economic situation in these states.