Wisconsin analysts worry about impact of possible Canadian tariff war as threats escalate
MILWAUKEE (CBS 58) -- A budding trade war with Canada could lead to devastating consequences for Wisconsin's economy.
The Associated Press reports Canada will announce retaliatory tariffs against the United States Tuesday, August 25.
John Miller, the secretary and CEO of the Wisconsin Economic Development Corporation (WEDC), said it's a real problem for the state. Miller said, "It goes right down into Main Street."
Higher prices and possible layoffs could be on the table if the U.S. and Canada trade costly tariffs.
President Trump put 50% tariffs on select Canadian goods after trade talks broke down over the weekend.
Monday night, a Canadian source told the AP Canada will respond with its own tariffs.
Then Trump escalated things again on social media Monday, telling Canadian leaders to "fall in line" or face consequences "far WORSE."
Ontario Premier Doug Ford said Canadians were not deterred: "I don't respond to a dictator like President Trump, a bully like President Trump."
Wisconsin companies and consumers could suffer if a trade war intensifies.
In 2025, Canada spent more than $7.5 billion on Wisconsin goods.
But, Miller said, "They're falling, and they fell about 8.6% last year, to the tune of about $700 million, which is the lowest level that we've exported to Canada since 2020."
In total, Miller said Wisconsin exports were down $687 million last year, the lowest amount since Covid.
Miller said his relationships with Canadian counterparts remain strong, but the state does not make federal trade policy.
Miller said WEDC schedules annual in-person trade missions to both Canada and Mexico. The trips to Mexico went as planned, but twice last year they had to cancel the Canadian trips.
"The Canadians on the other side of the border thought that doing business with Wisconsin companies was too risky," Miller said, "based on the uncertainty of tariffs."
There has not been much vocal support for the tariffs.
The MMAC said in a statement Canada is a critical trading partner and the tariffs are deeply concerning. The statement said, in part, "Higher tariffs ultimately mean higher costs, more uncertainty and less confidence to invest."
And Governor Evers took aim at Wisconsin's congressional Republicans for supporting the President in "making life even harder for ranchers, farmers, and producers."
We reached out to all of Wisconsin's representatives—including gubernatorial candidate Tom Tiffany—but no one responded to our requests for a comment.
Evers wrote, "It's reckless and ridiculous—and this chaos should've ended a long time ago."
For now, the threat of a tariff war has businesses on edge, uncertain of what comes next, for them, for their employees, and, "Also on the consumers," Miller said, "that are constantly going to have shifting prices when they go to buy goods and services in the marketplace."
Wisconsin's relationships with many other countries are holding strong, Miller told us. He and the WEDC met Monday night with a delegation from Japan to talk about Wisconsin's trade relationship with that country.