Months ago, after the then Presidential election, Donald Trump began talking about implementing the tariff in his second term, Leslie King sent an email to his owners.
King, who have been selling equipment in ABT Electronics at Glennview for almost 21 years, were seeking guidance to customers what to tell about the tariffs about tariffs. Eventually, the company held an internal discussion about what to say, the king said.
“We have a way to address it and do not panic to people because everything is quite expensive right now,” he said.
Currently, the king tries to assure the tariff-wise buyers that by putting deposits in their prices on the equipment, which can increase considerably after the tariff is imposed. And according to an ABT Electronics spokesperson, people are actually buying equipment before need in an attempt to save money.
Trump on Monday imposed 25% tariffs on all Mexican and Canadian goods for 30 days, so that countries can allow more interactions to further interaction to prevent the flow of illegal drugs. But on Tuesday, Trump proceeded with 10% tariffs on all Chinese products.
The new tariff on China will take a toll on trade between Illinois and China. This can actually complicate matters for farmers in the state, which worry that more anti -retarder tariffs can be placed on agricultural products that they export if the trade war of nations increases. New and proposed tariffs can also increase the cost of equipment as well as supply building construction, along with repairing the everyday house -can increase the price of large construction projects at O’Hare International Airport .
Gov. JB Pritzker on Wednesday referred to tariffs on three countries as Trump’s tax on families working.
Pritjkar wrote on Twitter earlier on X, “He is pushing us into an unwanted business war with our nearest colleagues and partners.” “And who will feel the result?” American every day. ,
According to the Illinois Department of Commerce and Economic occasion, in 2023, Illinois bought an import of about $ 44 billion from China, including about 27 billion dollars in computer and electronic products. Tariffs are paid by American importers, who often try to pass consumers with high costs through high prices.
China immediately retaliated by putting tariffs on American products including coal and large cars. It is also banning the export of important minerals and starting an no -confidence investigation in Google.
In 2023, according to the State Commerce Department, China was the fourth largest buyer of Illinois exports after Canada, Mexico and Germany.
A partner Cecil Sheya, with a non -profit Chicago Council on global affairs, warned that Chiragoland would suffer a lot if the US tariffs and other countries retaliate on some industries.
“We are a banking capital in Chicago here and an insurance capital,” Xi said. “If the country decides to take retaliation against life insurance companies or banking companies or long distance medical counseling companies, it is going to hurt Chikgoland. But I have not heard of China about doing so. ,
In Shea’s mind, tariffs on Canada and Mexico must have been “destructive” for the US for many reasons, including the fact that We buy too much food from our neighbors.
However, the US does not import more food from China. And, Shia said, America is tariff on some Chinese imports because the first Trump Term and former President Joe Biden actually implemented more.
“Companies have now adjusted in new general in various ways, and so are now going to be 10% higher at the top of those who are important,” Xi said. “But in the last eight years, companies including some companies in Chikgoland have transferred some of their manufacturing from China to Vietnam or Latin America. Some of them have taken it back to America ”
Even economists and politicians who generally oppose tariffs agree that some tariffs on China are understood in the current economic environment and political environment, according to Shea.
However, from Trump’s first term, tariffs and new people have been criticized for being very widespread, Xi said. In the past, countries using tariffs used them very deliberately – they would use tariffs to target industries that a foreign government was giving unfair subsidy for example.
Sheya said, “There are a lot of compromises that both (intentionally tariff) makes sense because China does not always play completely fair in terms of competition and also due to real concerns how its economy size affects global security Can, “She said.
General contractor associated with Chicagoland, a trade association for commercial builders, put on a webinar on tariffs for its members on Tuesday.
Association Executive Director Tom Kukulich said that with everyday products, many products used in construction are not manufactured in the US.
While a good amount of steel used in midwests is made in the US, a lot of wood is used here, comes from Canada and a lot of components for HVAC systems and other electronic building systems Asia and especially Come from China, Kukulich said.
The Trade Association has been monitoring tariff dialogue for months to inform its members about what can be about prices and supply lines.
“What (tariff talks) made uncertainty,” said Kukulich. “And when there is uncertainty, there is a risk. And the risk in construction means money and delay in projects. We are heartfelt From the fact that Mexico and Canada tariffs have been suspended, it brings a little more certainty to the market. ,
Cuculich stated that a focus of webinar was contract – and in particular, the importance of involving clauses that protect the builders if tariffs increase prices.
In the Lasel County, which is about 90 miles in the south -west of Chicago, David Israman has also closely monitored the tariff talks.
Isman, president of the Lasel County Form Bureau, said that American is dependent on agricultural exports.
There are about 20% of agriculture and food products done in America According to the US Department of Agriculture, it was sold in international markets. And China was the largest buyer of US agricultural exports in the financial year 2023, followed by Mexico and Canada.
“(Tariff talks) get related to us because what happens usually if you put a tariff on someone, they are going to retaliate by putting a tariff back on you,” said Isarman. “And it seems that they prefer to vengean agricultural products.”
Isman said that during the first Trump Term in 2018, China replied to the American tariff by putting tariffs on US soybeans, instead of buying soybeans from Brazil.
Isman said that American farmers received some payments from the government for the loss of soybean business, but it was only for the first year of the tariff. He said that American farmers are just starting to get that soybean export business back, he said.
Currently, farmers in Illinois are getting ready to plant crops and see their finance. For planting, farmers need to borrow a “tremendous amount of money”, Ismanon said.
“We have either talked to our banker or are going to talk to our banker,” Ismanman said. “And we have to explain how we are going to get through it.”
Farmers do not ensure how much they will have to pay for imported agricultural supply like fertilizerSince their prices may increase if the US applies more tariffs within the next month. And they cannot ensure how much they will be able to sell their products as other countries can put anti -anti -anti -US exports in the coming months.
Pat Cardoni, president of the Chicago chapter of Greater Chicago’s Building Industry Association and Cardoni Custom Homes, said that if the proposed tariffs on Canada become effective, there may be a short -term increase in prices on materials like wood, and American homebuilders can have a short -term increase. You can see somewhere else.
They feel that the discussion of the Trump administration is a positive around reducing the cost of housing because they are very high, especially in Chicago, but the proposed tariffs look like a “political football”.
The National Association of Home Builders condemned the proposed tariff and in a report on Saturday said that more than 70% softwood wood and gypsum (used for drywall) imports come from Canada and Mexico respectively, two essentials for homebuilders Material.
The tariff has the ability to hit the large -scale overhaul of the O’Hae International Airport, a credit rating agency said. The project is scheduled to replace terminal 2 with a new global terminal and add two satellites.
In December, Trump before taking over, Moody’s analysts stated that the credit rating report can pose a risk for the cost of the tariff and the immigration policy in the credit rating report, especially since very few work is closed with the construction contracts, especially since very few work is closed. Was gone
Analysts said, “With a renewed capacity to a inflation environment with changes in tariffs and immigration policy in 2025, it raises the risk for the cost of completing the construction,” analysts wrote, a compromise of an agreement The city and airlines arrived in spring praising.
At that time, according to Moody’s, 17.5% of the project was contracted.
Moody’s analyst Earl Hefintreer said in a recent statement, “O’He is not unique in facing the potentially increased construction costs from the tariff, which we think can increase the construction budget for future contracts.”
The Chicago Department of Aviation officials said that in a statement they were monitoring tariffs and other market conditions, but it was too early to determine any possible impact on the airport project.