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Dec 20, 2024, 9:06 AM CST
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EAU CLAIRE, Wis. (Public News Service) – 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.
Civic Media Digital Ed. Note: Felton is a member of the Eau Claire City Council.
This article originally appeared on Public News Service.
References: Wisconsin Small Business Profile US Small Business Administration 2023
