By james art 
Wisconsin drivers may soon pay more to the pump, restaurants may need to raise prices, and local farmers are facing uncertainty as President Donald Trump imposes tariffs for imports from Canada, Mexico and China.
The new commercial measures, signed in force on February 1, 2025, set a 10% tariff for Canadian energy imports and a 25% tariff for imports from Mexico and Canada. While the administration claims that this will provide the US border and limit drug trafficking, industrial groups warn that this can increase business costs, violate supply chains and cause economic revenge from key trading partners.
Trump said in his executive order on February 1, 2025:
“A nation without borders is not a nation at all. Mexico, China and Canada were complicit in disrespect for our borders and the tidal wave of deadly drugs in our country. “
The White House claims that these measures will put pressure on Mexico and Canada to strengthen borderline security while sanctioning China for its role in fentanyl traffic and unfair commercial practices.
What are the tariffs?
25% tariffs for all of Mexico’s imports 25% tariffs for all of Canada Imports 10% Tariffs for Canadian Energy Imports (including Oil) 10% tariffs for all imports from China
The White House says tariffs will “equalize play conditions” and increase federal revenue, citing previous tariffs for China, which according to reports generate over $ 40 billion a year.
However, the leaders of the industry claim that the higher prices and interruptions of the supply chain will load consumers and business.
Impact on Wisconsin’s energy and fuel prices
Wisconsin and much of the Midwest rely largely on Canadian crude oil, which is refined in gasoline, diesel and jet fuel for transport, agriculture and industry.
On February 1, 2025, the US Petroleum Institute (API) warned that the 10% tariff for Canadian energy would increase fuel costs for US consumers.
President and CEO of API Mike Somers said:
“Energy markets are highly integrated, and free and fair trade through our borders is crucial to providing affordable and reliable energy to US users.”
“We will continue to work with the Trump administration for full exceptions that protect energy accessibility, expand the energy advantage of the nation and support US jobs.”
What does this mean to Wisconsin:
Gaza prices may increase as refineries transfer costs to consumers.
Trucks, delivery drivers and farmers – who depend on diesel – can see higher costs.
Business with high energy needs (factories, logistics companies) can be facing increased costs.
Wisconsin business leaders have mixed reactions
The Wisconsin production sector relies on raw materials and components from Mexico and Canada. Higher tariffs can increase production costs, forcing companies to reduce jobs or increase prices.
The Winter 2025 Executive Director Survey by WisConsin Manufactures & Commerce (WMC), published on January 27, 2025, reveals a separate response from business leaders:
86% support for tariffs on China on unfair commercial practices. 44% maintain a 25% tariff for Canada and Mexico, while 56% opposed. 73% support, using tariffs as a tactic to negotiate illegal immigration. 50% of businesses expect negative effects, while 26% see positive effects.
WMC President/Executive Director Kurt Bauer said in the report:
“Wisconsin is a production and agricultural country. We do, grow and process things and want to sell them all over the world. But business leaders say we need our trading partners to play by the rules. “
What does this mean to Wisconsin: Automatic parts, electronics and machines – many of which are obtained from Mexico – can become more expensive. Wisconsin factories can face delays or increase the prices of materials affecting production and employment.
Uncertainty of work: Some businesses can freeze hiring or reduction of staff if the costs continue to increase.
Farmers and agriculture for revenge
Mexico and Canada are two of the largest buyers of export of dairy, pork and grain in Wisconsin, making them critical markets for the country’s farmers. As there are now new tariffs, agricultural groups warn that revenge measures can harm the farm’s income, limit export opportunities and worsen economic uncertainty for rural communities.
The National Union of Farmers (NFU) issued a strong response on February 1, 2025, warning that farmers could be among the most affected.
NFF President Rob Lareu said:
“The commercial actions announced by the President will almost certainly cause significant revenge against US agricultural products. This comes at a time of deep uncertainty for farmers – the rates of the stompinity are variable, the cost of the entrance remains high and we still lack an updated farm account. “
NFU expressed concern about long -term consequences, especially for family farmers and ranch, who have already suffered economic losses from previous commercial disputes.
“One thing is clear: American family farmers and ranch are always the first to carry the main burden of unilateral trade action,” “ said Lareu.
International Answer: Canada, Mexico and China go back
Canada: Prime Minister Justin Trudeau called the tariffs “unjustified” and promised economic revenge.
Saby said on February 1, 2025, press conference:
“We will take the necessary steps to protect Canadian jobs and business.”
Mexico: President Andres Manuel Lopez Obrador has condemned the tariffs and signals revenge.
Lopez Obrador said on February 1, 2025:
“Mexico will not afford to use as an economic scapegoat. We will respond with appropriate counteraction measures. “
China: The Chinese Ministry of Commerce condemned tariffs, calling them an “act of economic aggression”.
The Chinese government spokesman said on February 1, 2025:
“We will take the necessary steps to protect China’s economic interests and the imposition of reciprocal commercial measures.”
What happens after that?
goods for gasoline, food and consumers can see an increase in prices in the coming weeks. Wisconsin manufacturers are preparing for interruptions of the supply chain and higher costs.
Mexico, Canada and China can impose retaliatory tariffs affecting farmers and exporters.
Business leaders and commercial groups are pressing the administration to review the liberations.
How to prepare: More fuel rather than later, to avoid potential increases in gas prices.
Stock on tequila and imported foods if you are concerned about raising prices.
Farmers and manufacturers must monitor export policies for potential revenge. Watch how local companies respond – some can adjust the hiring, pricing or delivering chains.
What is next for Racine County?
The eye of Racine County will continue to provide updates as businesses, farmers and consumers in Wisconsin are oriented in the impact of these rates.
Have insights or concerns? Notify us to news@racinecountyeye.com.