Gov. Tony Evers at a WisPolitics luncheon said tariffs on Canada, Mexico and China will have a negative impact on Wisconsin and possibly reduce the state’s projected $4.3 billion surplus.
President Donald Trump’s proposed 25% tariffs on Mexican and Canadian imports officially took effect Tuesday after they were delayed for a month. That’s along with a 20% tariff on Chinese imports. Trump has said the tariffs are necessary to crack down on fentanyl coming into the United States, while economists have noted they will likely lead to higher prices for Americans. The action has led to retaliatory tariffs on U.S. exports.
Evers at the Madison event Tuesday criticized Congress for not taking action, saying “it’s going to be hell to pay.”
“This is not a good situation. We have good working relationships with Canada, certainly we do with Mexico also, but just knowing that they’re already retaliating against us, this is not good for our democracy,” Evers said.
Evers said “of course” the tariffs will have an impact on the state’s projected surplus. He touted measures in his budget, including $2 billion for tax cuts, which aim to help cut costs.
“Those are steps in the right direction, right? Making sure that over-the-counter things and pharmacies are sales tax-free. But will that make up for what’s going on worldwide? No, it’s not. So … it makes our jobs a lot harder,” he said.
WisGOP Rapid Response Director Anika Rickard in a statement to WisPolitics said “President Trump has a simple request for Mexico and Canada: help secure the borders and stop the flow of fentanyl.”
“Tony Evers should be working with the Administration to protect our communities instead of trying to score political points,” Rickard said.
Evers said he’s starting to question whether the $500 million he proposed setting aside to respond to actions in Washington, including cuts to federal funding, “is enough to help us kind of get through this manic situation in Washington, D.C.”
The Dem guv also said he would likely veto Republicans’ tax cut plan that’s in development. Republicans have vowed to present a proposal to Evers ahead of the state budget. Evers said he expected Republicans to introduce a package that would help wealthier Wisconsinites.
“When you do a budget, you really have to do expenditures and revenues at the same time, not separating them,” Evers said. “But they have an interest in doing this, and I think it’s bad policy, but it’s horrendous policy when you don’t know what’s happening in Washington, D.C. and how this mess is going to play out.”
Evers also strongly criticized potential cuts to Medicaid as Republicans in DC seek to reduce federal spending by as much as $2 trillion. He said the state will continue to push for Medicaid expansion and noted the program provides care for low-income Wisconsinites.
“The idea that somehow we’re going to be a better country by cutting that, that’s just bullshit,” Evers said.
Evers again declined to endorse a candidate in the state superintendent race.
Incumbent Jill Underly, backed by the state Dem Party, is facing off against Wauwatosa education consultant Brittany Kinser on April 1.
Evers didn’t endorse anyone in the 2021 DPI race that Underly won and typically hasn’t endorsed in statewide spring races while he’s been guv.
“It’ll be a race, and whoever wins, wins,” said Evers, who won three terms as state superintendent.
Evers also weighed in on Underly’s $4 billion budget request for the Department of Public Instruction, which he called “ridiculously high.” Evers has proposed to boost school funding by $3.4 billion.
He also said DPI should have communicated better before changing the threshold for what is considered “proficient” on statewide tests.
“Something like that should have been vetted in some fashion publicly so that people knew what was coming, and that would have worked better,” he said.
Underly has repeatedly defended changes to the state’s standards, which she says were made through a transparent process with input from educators and will more accurately reflect student achievement.
Evers said Underly didn’t run the change past him, “but she didn’t run it past anybody; it wasn’t just me.”
Evers after the event told reporters he will likely veto Republicans’ legislation to overhaul DPI’s changes to state test standards.
“I have a very strong belief that that’s an independent agency, and they can make those decisions,” Evers said. “So having the Legislature suddenly say, ‘Well, we’re the experts here, and this is what … the cut scores should be,’ I think that’s wrongheaded. It’s an independent agency for a reason.”
He also shut down the possibility of opening another maximum security prison to replace the aging Green Bay Correctional Institute he has proposed to close.
Evers ahead of his budget announced a $535.5 million plan to revamp the state’s prison system. It included provisions to expand earned early release, to overhaul the prison in Waupun, to implement job training programs for prisoners, and to close the Green Bay prison in 2029.
Assembly Speaker Robin Vos, R-Rochester, said last week that several of the proposals were nonstarters with GOP lawmakers, including leaving the state with 700 fewer beds than it now has. He also called for using $2 billion of the state’s projected budget surplus for prisons, including a new facility in the Green Bay area.
“That would cost $1 billion dollars minimum, and it’ll take 12 years to do,” Evers said of a new Green Bay prison. “We can add to Stanley (Correctional Institution) and that would … take care of any concerns about that.” Watch WisconsinEye video.
