Economic development leaders in Wisconsin are worried the Trump administration’s latest round of tariffs will make it harder to do business with the state’s biggest trading partner
This week, the administration announced new 50 percent tariffs on certain products from Canada, ranging from wine and dairy products to hockey sticks and cement. They are set to take effect on Aug. 19. The White House says the tariffs are in response to discriminatory trade practices
“President Trump is offsetting the burden and disadvantage on U.S. commerce from Canada’s discriminatory treatment of U.S. commerce and is leveling the playing field for crucial American exports — cars, alcohol, and dairy,” the White House announcement reads
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In 2024, Wisconsin had a trade surplus with Canada, exporting roughly $8.5 billion worth of goods while importing $6.3 billion, according to reports from the Wisconsin Policy Forum
That year, Canada was the largest buyer of Wisconsin goods of any country, and ranked as the state’s second biggest
“Wisconsin’s biggest exports tend to be heavy machinery (or) electrical machinery, the big expensive stuff that really drives good paying jobs,” said Tyler Byrnes, a senior research associate at Wisconsin Policy Forum. “If there was something that disrupted access to that market, that could potentially have serious consequences for Wisconsin’s economy.”
Sam Rikkers, chief operating officer for the Wisconsin Economic Development Corp., said the agency views Canada as Wisconsin’s “single most important trading relationship,” and he’s concerned the new tariffs could further strain business ties and discourage future investment in the state
Over the last year and a half, he said trade and political tensions have created uncertainty for manufacturers, farmers and exporters.
Since returning to office, President Donald Trump has imposed an array of tariffs on Canada, and has spoken about turning the nation’s neighbor to the north into the 51st state.
WEDC typically schedules an annual in-person trade mission to Canada to help connect Wisconsin businesses to export opportunities.
According to WEDC, a trade mission to Canada with five Wisconsin businesses was scheduled for March 2025. But it was converted to virtual meetings because Canadian firms were reluctant to participate
The agency tentatively scheduled another in-person trade mission to Canada for November 2025 but it was eventually cancelled because the number of potential participants fell, the agency said.
“We were unable to find meetings for our Wisconsin businesses with Canadian counterparts, just because they were fed up and had no appetite to meet with U.S. businesses,” Rikkers said. “It really hurt our growing exporters.”
WEDC so far has not scheduled any Canadian trade missions for 2026.
Southeast Wisconsin business group ‘deeply concerned’ about new Canada tariffs
Dale Kooyenga, president and CEO of the Metropolitan Milwaukee Association of Commerce, said the association is “deeply concerned” about the potential impact of the new tariffs on businesses in Wisconsin
“Our economy relies heavily on manufacturing and international trade,” he said in a statement. “Therefore, any policy that disrupts long-established supply chains or invites retaliatory measures threatens the economic growth and job creation that have helped make our region competitive.”
Kooyenga called Canada “one of Wisconsin’s most important trading partners,” and said the association would prefer to see federal policymakers use “a more strategic and measured approach to trade policy.”
He added that broad tariffs “often raise costs, increase uncertainty and slow economic growth.”
A new report from the nonprofit Midwest Economic Policy Institute and the Project for Middle Class Renewal at the University of Illinois at Urbana-Champaign tried to quantify the impact of tariffs
The report found that tariffs imposed by the Trump administration in 2025 raised average household costs in the Midwest by more than $2,000 and reduced the region’s manufacturing employment by more than 41,000
In Wisconsin, the report found average household costs increased by $1,500 and the manufacturing sector lost 6,100 jobs
Businesses involved in cross-border trade say the latest tariff announcement is already affecting planning and purchasing decisions
Sandi Siegel is president and managing director of M.E. Dey & Co., an international freight forwarding and customs brokerage firm in Milwaukee. She told WPR’s “Wisconsin Today” that her company is helping customers try to import the products they need before the tariffs take effect on Aug. 19
“Canada is close enough that you can get the goods in before that date, and you won’t have to pay those additional tariffs,” she said. “If they come into the U.S. after that date, those tariffs will apply.”
The new tariff announcement comes as the United States is renegotiating its trade pact with Canada and Mexico, known as the USMCA. In a statement on social media, Canadian Prime Minister Mark Carney said the new tariffs are a direct violation of that agreement
Siegel said the new tariffs would apply regardless of whether or not the items are covered under the USMCA
“It appears that Trump is all but abandoning any agreements that he made in the first administration,” she said
Dairy groups celebrate tariff announcement, manufacturing group critical of the move
While some business groups have been critical of the new import taxes, the National Milk Producers Federation and the U.S. Dairy Export Council welcomed the administration’s decision to impose 50 percent tariffs on dairy imports from Canada
In a statement, the groups said Canada was abusing the USMCA to deny U.S. dairy producers opportunities to access the Canadian market
Gregg Doud, president of the National Milk Producers Federation, said Canada was using unfair trade practices in the dairy industry
“Canada simply cannot continue to discriminate against U.S. dairy farmers by effectively blocking negotiated access to its market,” Doud said in a statement. “It is well past time for Canada to negotiate in good faith and tackle the outstanding USMCA dairy implementation issues.”
Even so, equipment manufacturers warned new tariffs could put additional strain on supply chains across North America
Kip Eideberg is senior vice president of Government and Industry Relations for the Association of Equipment Manufacturers, a national trade group based in West Allis. He said the equipment manufacturing industry supports more than 180,000 jobs in Wisconsin
Eideberg said Canada is a crucial market for equipment manufacturers and that the “long-term stability” of that market is critical to the industry’s success.
He said the new tariffs could place additional stress on that trade relationship after it faced “a roller coaster” of strain and pressure in 2025
“The only way we can continue to build equipment in Wisconsin and create more family-sustaining jobs in Wisconsin is if we have customers to buy that equipment,” Eideberg said. “We obviously need more customers than what is in the United States in order to continue to grow and expand. Canada is an important market.”
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