New tariffs announced by the Trump administration are expected to drive up prices for Wisconsin consumers and strain key industries across the state, Wisconsin Public Radio reports. On April 2, President Trump imposed a minimum 10% tariff on imports from dozens of countries, with the European Union facing a 20% rate and some Asian and African countries hit with tariffs nearing 50%. China, which was slapped with a 34% tariff, responded with sweeping retaliatory tariffs on all U.S. imports. Canada, too, issued its own 25% tariff on vehicles after earlier auto parts tariffs from the U.S. went into effect.
The effect will be especially pronounced in Wisconsin, where agriculture, industrial manufacturing and automotive sectors play major roles. According to Marquette University’s Marko Bastl, nearly half of Wisconsin’s $38.8 billion in annual imports come from Canada, China and Mexico, which are now all affected by the trade war. Consumers are likely to see higher prices on everything from clothing and appliances to vehicles, while businesses may face reduced competitiveness and shrinking exports.
Households could feel the financial pinch significantly. The Yale Budget Lab estimates that the average American household will lose about $2,100 due to the new tariffs, and up to $3,800 when including all tariffs enacted this year. In the auto sector alone, the price of a new car could rise as much as $10,000, prompting many consumers to delay purchases and driving up the cost of used vehicles as demand shifts.
Retaliatory tariffs from other countries also threaten Wisconsin-made goods like cheese, pork and Harley-Davidson motorcycles. Experts say while large automakers may be able to adapt production within months, small and mid-sized businesses don’t have the same flexibility. Rebuilding domestic manufacturing capacity would take years due to labor shortages, infrastructure needs and globalized supply chains.
Even companies that source materials domestically, such as New Glarus Brewing Company, are feeling the squeeze. Brewmaster Daniel Carey said rising demand and supply chain disruption are likely to drive up costs, even though the brewery uses U.S.-made aluminum cans. With the company in the midst of a $55 million expansion, Carey said the uncertainty surrounding tariffs is dampening customer confidence and could slow business. “We’re in the middle of a storm,” he said. “How much damage will be done to the house, I can’t say yet.”
