FOR IMMEDIATE RELEASE
THURSDAY, DECEMBER 19, 2024
CONTACT: press@opportunitywisconsin.org
ICYMI: Increased tariffs could hurt Wisconsin small businesses
“The Trump tariffs really couldn't come at a worse time for small businesses.”
MADISON, Wis. – In case you missed it, Wisconsin small business owners are speaking out against proposals from President-elect Donald Trump and Republicans in Congress to raise tariffs, warning consumers that new tariffs will increase costs and threaten Wisconsin’s economy.
Under the proposed tariffs, goods imported from major trading partners would lead to higher costs for Americans, including basic household items like food, clothing, and more. Trump has already doubled down on his pledge to cut the corporate tax rate, giving more handouts to large, successful corporations, while working families and small businesses are left without the relief they deserve.
“Small businesses and working families are the heart of our economy – increased tariffs are only going to make it harder for them to succeed,” said Opportunity Wisconsin Program Director Meghan Roh. “Republicans in Congress need to stand up to President-elect Trump and find ways to support Wisconsin families, empower entrepreneurs, and create an economy that works for everyone.”
An Eau Claire small business braces for Trump tariffs
Thursday, December 19, 2024
As the new year quickly approaches, Wisconsin business owners and shoppers alike are bracing for the prospect of tariffs from a new administration that could affect both their livelihoods and families. Eau Claire Outdoors is a shop that sells gear for camping and backwoods experiences.
Kate Felton, shop owner, said she carries products manufactured both in the U.S. and elsewhere. She worries about shoppers being able to afford the brands she stocks if U.S. manufacturers increase prices as a result of tariff backlash.
"The Trump tariffs really couldn't come at a worse time for small businesses. Certainly, there's no good time for this to come - but this moment in particular is just a very dangerous moment for prices to increase on small businesses," she explained.
Eau Claire small businesses saw record-low sales this past year, she added, including the lowest turnout for Small Business Saturday in over a decade. Felton said the uncertainty has also made her and her husband reconsider plans to start a family. President-elect Donald Trump has promised to impose a new slate of tariffs as soon as he enters office in January.
Tariffs, or taxes on imports, are paid by businesses purchasing goods from other countries. Economists say tariffs are typically passed on to consumers of anything the U.S. imports, from electronics and home goods to gas.
Thomas Kemp, University of Wisconsin-Eau Claire economics department chair, suspects a significant number of businesses in the state would feel the effects.
"Let's say a small Wisconsin business is dependent upon a Chinese supplier for, say, machinery and equipment, that's going to impact them significantly. Or if they're a retailer that sells primarily goods and services made in China, they're going to be impacted by this," he explained.
In 2022, Wisconsin, imports totaled $41-billion, the highest level recorded in state history, according to Wisconsin Economic Development. The state ranks 20th nationally for imports.
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