Illinois leaders, economists, businesses criticize President Trump's sweeping new tariffs
CHICAGO (WLS) -- President Donald Trump on Wednesday announced a sweeping, long-promised round of tariffs on what he's calling "Liberation Day."
The tariffs are being described as semi-reciprocal, targeting countries he said are the worst offenders in trade relations with the United States.
Illinois leaders and economy experts reacted to the announcement on Wednesday.
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President Trump referred to Thursday as a "Declaration of Economic Independence." Trump went so far as to say it is one of the most important days in American history.
However, his critics, and even many economists, warn steep tariffs could slow America's economic growth and potentially send it spiraling toward a recession.
The tariffs seem so broad-based and not well negotiated or thought out that they will potentially destroy some businesses in Mexico that U.S. companies rely onJB Pritzker, Illinois Governor
"April 2, 2025, will forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day that we began to make America wealthy again," Trump said.
At the White House Rose Garden, the President addressed the country in front of a crowd of fellow Republicans, other members of his administration and a group of autoworkers.
"For years, hard working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense, but now it's our turn to prosper," Trump said.
The new measures include a minimum baseline tariff of 10% and more "reciprocal" levies on certain countries, including China, the European Union, Taiwan and many others. In some cases, the tariffs are reaching levels not seen since the early 1900s.
"We will charge them approximately half of what they are, and have been charging us so the tariffs will be not a full reciprocal, I could have done that, yes, but it would have been tough for a lot of countries," Trump said.
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Meanwhile, Illinois Governor JB Pritzker is in Mexico City on what he's calling an international trade mission, pitching Illinois as the ideal place for business to companies and investors alike. On a phone call with reporters before the president's announcement, Pritzker weighe in on Trump's plans.
"The tariffs seem so broad-based and not well negotiated or thought out that they will potentially destroy some businesses in Mexico that U.S. companies rely on," Pritzker said.
On the Senate floor Wednesday, Illinois Senator Dick Durbin had a similar message, slamming Trump's tariffs.
"He is pushing forward with his plan that economists, experts, and even the White House itself admits is going to be painful for American families," Durbin said. "How does unnecessarily tanking our economy, alienating our allies, and taking money out of the wallets of Americans make America great again?"
And while Trump maintains the goal is to have U.S. companies bring manufacturing back to the states, Northwestern Professor Phillip Braun said the effect on the consumer remains the same, whether companies manufacture aboard or at home.
"It's a long term process," Braun said. "It's not going to happen one or two years out, because you have to build factories. You have to rebuild supply chains. But even even if manufacturers bring their production back to the US, it's still going to raise costs. Because the reason manufacturing right now is overseas, because it's cheaper."
Businesses in Chicago are bracing for the potential impact of the new tariff plan.
For more than half a century, the shelves of Gene's Sausage Shop in Lincoln Square have stocked the tangible fruits of a global trade economy, including Italian vinegar, German pickles and French wine.
'If you look across our shelves, you can see that 70-80% of this is imported, whether it be from the EU or other countries," Gene's Sausage Shop co-owner Derek Luszcz said.
Now, each one of the European delicacies is the target of an impending 20% tariff.
"Our pricing has gone up 20% in general, and it's eased in the last couple of months," Luszcz said. "And now we're getting hit again."
President Trump and his advisors insist tariffs are the best means to jumpstart American manufacturing. Northwestern Economics professor Mark Witte doesn't see it that way.
"It's going to be very nice if you're a domestic producer and your competitors have their prices are driven up because of tariffs. But the response is going to be that you're going to raise your prices, and this can be really bad for consumers," Witte said. "What we want to do is to benefit consumers, because we are all consumers."
Now, cosmopolitan consumers at Gene's Sausage Shop could pay a premium, and daily orders from international distributors might be consolidated.
"We're all for American jobs, don't get me wrong, but there is a market for international goods also," Luszcz said.
Governor Pritzker released the following statement Wednesday afternoon:
"Donald Trump may want to call this 'Liberation Day,' but there is nothing liberating for working families who are grappling with the high costs of food, housing, and utilities.
"Tariffs are a tax. They are a tax on working families, a tax on groceries, and a tax on other everyday necessities. Instead of doing anything meaningful to lower prices for Americans, the Trump Tax on Working Families is an extreme escalation against our closest allies that will raise prices just to give Elon Musk and his wealthiest friends a tax break."
