The Center for Research on the Wisconsin Economy (CROWE) is pleased to present a timely report entitled “Will Tariffs Make Wisconsin Rich?”
Key takeaways from the report:
Tariffs are taxes collected by the Federal government from domestic firms when they import goods from other countries
In theory, the burden from tariff hikes could fall on consumers, domestic firms or foreign exporters
During President Trump’s first term, the burden from tariff hikes fell almost entirely on domestic consumers and importers
Import and retaliatory tariffs had a negative impact on the U.S. economy
Increases in tariffs resulted in higher prices and production costs for Wisconsin households and firms
Canada, China, and Mexico are at the center of President Trump’s recent tariff actions. They account for about half of Wisconsin’s imports and exports.
Products Wisconsin imports almost exclusively from these countries are more vulnerable to import tariffs against these countries (e.g. almost all live animals and fertilizers imported to Wisconsin come from Canada)
Products Wisconsin exports almost exclusively to these countries are more vulnerable to retaliatory tariffs by these countries (e.g. almost all beverages, spirits and vinegar exported from Wisconsin go to Canada)
Sustained tariff hikes against Canada, China and Mexico and retaliatory tariffs will have a negative impact on the Wisconsin economy.
About CROWE
The Center for Research on the Wisconsin Economy (CROWE) was established in 2017 within the Department of Economics at the University of Wisconsin-Madison. CROWE’s mission is to support and disseminate economic policy research from a market perspective, with a particular focus on the Wisconsin economy and state-level economic policy issues. CROWE is an integral part of both the campus and the broader business and policy community in the state. The work at CROWE spans three main areas: research, student engagement, and public outreach.
For more information on CROWE, visit crowe.wisc.edu
