A new report from the University of Wisconsin-Madison’s Center for Research on the Wisconsin economy warns that President Trump’s proposed tariffs will have a negative impact on Wisconsin consumers. The proposed tariffs on Canada, China, and Mexico – the state’s top three trading partners – could lead to higher prices and production costs for imports. Canada has already announced retaliatory tariffs on $20 billion worth of U.S. goods, further escalating the trade tensions.
The report highlights that the burden of tariff hikes will fall on domestic consumers and importers, rather than foreign exporters. Evidence from Trump’s first term shows that while $34.3 billion in customs duties were collected, U.S. consumers and firms faced losses of $51 billion. The report also notes that import and retaliatory tariffs have led to significant declines in both U.S. imports and exports, as well as changes in the supply chain.
Wisconsin imports have increased significantly, reaching $38.9 billion in 2024 compared to $27.7 billion in 2017, indicating a potentially larger impact on consumers in the state. The report warns that the tariffs could lead to higher prices for a wide range of products, from machinery to medical equipment.
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