Report: Tariffs could worsen Wisconsin’s ‘turbulent’ export economy

(Public News Service) – Exports are important to Wisconsin’s economy but a new report found they are facing turbulence between a decade-long decline and the uncertainty of new tariffs.

Businesses and farmers across the state rely on exports and some of the biggest categories are industrial, electrical and agriculture. The value of exports has dropped in the last 10 years, according to the Wisconsin Policy Forum report. The state has gone from the 19th top-exporting state to 21st.

Tyler Byrnes, senior research associate for the Wisconsin Policy Forum, said the cause is difficult to pinpoint but factors like labor costs, consumer tastes and workforce changes all play a role.

“Wisconsin is one of the most dependent states on agriculture and manufacturing jobs,” Byrnes pointed out. “Any disruption to our access to international markets puts a lot of people at risk.”

Byrnes added U.S. tariffs triggering retaliatory actions could make Wisconsin goods more expensive, potentially causing consumers to seek alternatives.

The report looked at state-produced goods, where they are produced and which countries buy them. Milwaukee exports the most goods, with total exports last year valued at $9.7 billion, down nearly 20% from a decade ago.

Byrnes noted it mirrors drops seen in other industrial cities.

“Exports are an important measure of the economic health of an area, of a state, of a city,” Byrnes explained. “But it’s not the primary measure. It’s one of many.”

Last year, Canada, the European Union, Mexico and China were the top buyers of Wisconsin-made products, accounting for about two-thirds of all the state’s exports, according to the report, and the U.S. has imposed tariffs on all of them. Byrnes emphasized the uncertainty creates challenges, both for businesses and consumers.

“Over the long term, we don’t really know what exactly it’s going to look like,” Byrnes acknowledged. “I’m hesitant to make a guesstimate. But I do think there are impacts related to this uncertainty around where we’re going to source goods, where we’re going to sell goods, and what trade is going to look like.”