Businesses and consumers in the state bought $38.9 billion in imported goods last year, a decline from the recent peak of $43.9 billion in 2022.
That’s according to the Wisconsin Policy Forum’s latest report, which shows the inflation-adjusted value of state imports has risen 32.4% since 2016.
As Wisconsin imports have been rising in recent years, exports have seen a decline, leading to a trade imbalance for the state. From 2012 to 2016, the state exported about $30 billion in goods annually while importing about the same amount each year.
But by last year, state exports of physical goods had dipped to $27.5 billion, meaning imports exceeded exports by $11.4 billion. WPF says factors leading to this change could include shifts in industrial bases and natural resources, currency values, savings rates and more.
“A trade imbalance is not necessarily good or bad, just as borrowing is not necessarily good or bad,” authors wrote. “Ultimately, it depends on the larger circumstances.”
Industrial and electrical machinery are the two largest categories for Wisconsin imports, with $8.2 billion and $4.9 billion in 2024, respectively. Those are followed closely by pharmaceutical products at $4.7 billion.
WPF notes industrial and electrical machinery are also the top two categories for state exports, showing that businesses in the state are buying crucial equipment needed to build other machines for domestic and international markets.
“This shows the vital connection between the state’s import and export activities,” authors wrote.
While China, Canada and Mexico remain Wisconsin’s top trading partners, import trends from these countries have seen major changes in recent years.
The value of state imports from China have dropped 37.3% between 2018 and 2024, from $10.2 billion to $6.4 billion. Meanwhile, imports from Mexico have “grown dramatically” over the same period, rising 68.6% from $3.5 billion to $5.9 billion. Canadian imports have stayed fairly steady over this time at around $6 billion.
The European Union collectively forms a substantial import market for Wisconsin, with about $10.2 billion in EU goods imported to the state last year. WPF notes Ireland was “somewhat surprisingly” the top European trading partner for Wisconsin last year, and its fourth largest overall with $3.4 billion in imports.
That’s a big change from a decade earlier, when Ireland wasn’t even among the state’s top 35 trading partners. Authors attribute the change to “massive growth” in the Irish pharmaceutical industry, especially vaccines, that has occurred since 2015.
The report references the ongoing uncertainty around the Trump administration’s tariff policy, as the current 90-day pause on reciprocal tariffs is set to expire in July.
“The value of imports to Wisconsin has grown over the last decade, but U.S. tariffs may change that trend,” authors wrote. “Though the tariffs are meant to support U.S. manufacturing, they could also spur higher prices and interest rates, limit the availability of certain goods, and slow economic growth.”
See more from the report.
