Wisconsin’s imports from China have been decreasing since 2018, well before President Trump began implementing his latest tariff policies, according to a newly released Wisconsin Policy Forum report.
The report on Wisconsin’s “shifting import economy” examines import data going back to 2016, which was sourced from the International Trade Administration and U.S. Department of Commerce.
The inflation-adjusted value of state imports from China have fallen by 37.3%, from $10.2 billion in 2018 to $6.4 billion in 2024.
The drop in imports from China is likely tied to U.S. tariffs imposed in 2018 on some Chinese items, according to Wisconsin Policy Forum’s findings.
“The (2018) tariffs and shifting climate likely resulted in Chinese companies shifting the origin of some goods sold to the United States from China to other southeast Asian countries, like Vietnam, in an effort to avoid those additional costs,” according to the report.
Meanwhile, imports from Mexico have grown from $3.5 billion in 2018 to $5.9 billion in 2024 (68.6%). Vehicles and vehicle parts are the largest category of state imports from Mexico.
The report also links this increase to the 2018 Chinese tariffs, which shifted some production of goods away from China and into Mexico.
“The value of imports to Wisconsin has grown over the last decade, but U.S. tariffs may change that trend,” according to the report. “Though the tariffs are meant to support U.S. manufacturing, they could also spur higher prices and interest rates, limit the availability of certain goods, and slow economic growth.”
While the Trump administration has stated the goal of recently announced — and then paused — tariffs is to boost domestic manufacturing and improve trade deals with other countries, “some commentators have notes these goals are in some tensions with one another,” reads the report.
“The ultimate upshot of the tariffs is still unclear. But the nation’s current economic outlook is less solid than it was six months ago, with consumer sentiment falling and some economists predicting a recession,” according to the report.
More coverage of tariffs and the Wisconsin economy:
- Mayville Engineering positioned to take advantage of tariffs
- Weyco Group temporarily halts China imports to soften tariffs’ blow, plans to source elsewhere
- Molded Dimensions Group helps manufacturers navigate tariffs through the Reshore Success Program
- Wisconsin businesses back China tariffs, mixed on tariffs for North American neighbors
