Good morning
I want to take a moment to bring your attention to the recently proposed (and now paused) tariffs by President Donald Trump and what they could mean for businesses in Wisconsin. As members of Envision Greater Fond du Lac, it is crucial to stay informed on economic developments that could affect our region’s industries, supply chains, and bottom lines.
What’s Happening?
The proposed tariffs, if enacted after the 30 day pause, could significantly alter trade relationships with key partners like Canada and Mexico—Wisconsin’s top two export and import markets. These tariffs may impact a wide range of industries, from manufacturing and agriculture to retail and logistics.
Why It Matters to Wisconsin Businesses
Trade with Canada:
- Exports: Wisconsin exports $8.5 billion in goods to Canada annually, including agricultural products, industrial equipment, and paper products?. Canada is Wisconsin’s #1 export market and #13 trade partner.
- Imports: Wisconsin imports $6.3 billion in goods from Canada, including plastics, paper, fuel oil, wood products, iron, steel, and automobiles?. Increased tariffs could disrupt supply chains and raise costs for manufacturers relying on Canadian raw materials such as aluminum and steel?. If Canada retaliates with its own set of tariffs, it will hurt the paper and agriculture industries the most in our region.
Trade with Mexico:
- Exports: Wisconsin exports $7.5 billion in goods to Mexico, with leading categories including electrical equipment, machinery, motor vehicle parts, and plastics?. Mexico is Wisconsin’s #2 export market and #3 trade partner.
- Imports: Wisconsin imports $3.9 billion in goods from Mexico, including motor vehicles, electrical equipment, medical instruments, and fabricated metal products?. Tariffs could lead to retaliatory measures, affecting businesses that depend on exports to Mexico or imports of critical components?.
Impact on Agriculture:
With Canada and Mexico being key markets for Wisconsin’s dairy, grain, and processed foods, increased tariffs could make U.S. goods less competitive, impacting local farmers and food producers?. Likewise, higher import costs on agricultural products such as baked goods, beef, and potatoes from Canada could affect food-related businesses and consumers?.
What You Can Do
We encourage our business community to stay engaged and informed on this issue.
Consider:
- Evaluating your supply chain for potential cost increases.
- Exploring alternative sourcing strategies to mitigate risk.
- Engaging with industry associations and policymakers to voice concerns.
Envision Greater Fond du Lac will continue to monitor these developments and provide updates as they unfold. If you have feedback on how this may affect your business or supply chain, please let me know. We are gathering feedback from our members to share with the Wisconsin Congressional delegation.
Best regards,
Sadie Howell
President/CEO
Envision Greater Fond du Lac
