Local manufacturer, UW -Madison Economist weighs the impact of tariffs – WMTV

Madison, wis. (WMTV) – With the new tariffs, probably along the way, people in Wisconsin are preparing for potential impacts.

The United States has reached agreements with both Mexico and Canada to delay a 25% tariff for the entire import of a month. There is still a new 10% additional tariff for China, which will take effect at 11pm on Monday.

The president and CEO of the local manufacturer Stoughton Trailers Bob Walin said some of their equipment parts come from Asia and Mexico, but the company most relies on American goods.

Welin said she predicts higher prices temporarily than tariffs, especially products such as aluminum and steel, but believes that these costs will eventually reduce.

“We hope it will not raise our prices,” Walin said. “This can lead to our expenses now; We have to deal with this and we can do our prices, but we think this would be in the short term and in the long run I think it will be a tool that lowers prices. “

In the long run, Walin said he believed that tariffs would be useful for his business and the US economy in general. Walin said he thinks that would also increase US production

“This will probably lead to a price jump,” Walin said. “But in the long run, these prices will return and do in the United States, not abroad. This will provide jobs to many people in the United States and will also improve salaries in manufacturing workplaces. “

On the other hand, UW-Madison Economics Professor Charles Engel believes that prices will increase, but said tariffs would not provide a good result for the future.

In the past, President Trump’s tariffs raised the prices of most products, according to Engel.

“There were tariffs imposed on China in the higher Trump administration,” Engel said. “For most goods, over 90% of the costs were transferred to the consumer.”

Although industries that compete with foreign countries can benefit from tariffs, Engel said the average consumer would probably pay higher prices for goods such as food, cars, alcohol and clothing.

Engel said it could take years to see long -term effects, but fear that the overall wealth of the US economy may be reduced over time.

“President Trump said there would be some pain,” Engel said. “And you can interpret it as there will be some short -term pain, but I think the real answer is that there is short -term pain and what you get for it is long -term pain.”

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