How will tariffs affect the midterms? In this Michigan border town, it's complicated

Sault Ste. Marie, Mich. is connected to its sister city, Sault Ste. Marie, Ontario by the International Bridge. Both cities are facing economic challenges due to Trump's imposed tariffs. Education Images/Universal Images Group via Getty Images hide caption

SAULT STE. MARIE, Mich. – The escalating trade war between the U.S. and Canada is particularly tangible in Michigan's rural Upper Peninsula, regionally known as the UP, where many residents rely on the regular exchange of goods and tourists that cross over several times between the two countries.

While Michigan is home to a competitive U.S. Senate race, this region has most recently voted for Republicans. The last Democrat to represent the UP in Congress was Bart Stupak, who left office in 2011.

Now, President Trump's decision to impose a 50% tariff on nearly $20 billion in Canadian goods could influence a race that could be pivotal to the balance of power come November.

UP residents – affectionately known as "Yoopers" – are already facing high costs on goods and groceries. Part of the problem is that the UP is difficult to get to - accessible by two bridges and a land border with Wisconsin. That also means higher shipping and transportation costs during a time of record high diesel fuel.

Ben Rahilly owns an appliance store, a gift shop, a furniture store and a concrete business in Newberry, a faded logging town about 60 miles west of the Canadian border. The village's largest employers are a prison, a hospital and a mill that makes wood siding.

Rahilly says running a small business in a county that has around 5,300 people is tough work.

Downtown Newberry, Mich. The single-screen Tahqua Land Theater plays new movies, while the neighboring drug store has closed. Russ McNamara/Michigan Public Radio hide caption