SPRINGFIELD, Ill. (WAND) — Illinois manufacturers say tariffs on critical inputs increase costs on raw materials, machinery and equipment on factory floors.
The Illinois Manufacturers' Association told lawmakers Thursday that this industry is split on tariffs since it is a complex issue.
IMA President and CEO Mark Denzler said tariffs can be an effective tool if countries are cheating or gaming the system by failing to follow trade agreements. However, manufacturers also need stability and predictability.
"Trade and tariff policies that are changing consistently make it very difficult to operate today or plan for the future," Denzler said. "We've seen a number of companies pull back on CapEx spending and hiring until the tariff and trade issue settles down a bit, but at the same time, we've seen Illinois manufacturers take advantage of this situation with companies looking to reshore or find new suppliers in the United States."
Denzler suggested the Trump administration should pursue zero-for-zero tariff deals with trading partners and negotiate fair trade agreements.
The Illinois tourism industry has also seen a drastic drop in international travelers due to new tariffs.
Industry leaders told lawmakers international travel into the United States is expected to drop by 6.3% from 2024 to 2025. They said significantly fewer visits from Canada are the primary driver for this decrease.
Potential risks that will impact international visits include increases in visa fees, extended wait times for visa applications and renewals, and continued mixed sentiment towards the United States in key markets like Canada and Mexico," said JD Dalfonso from the Illinois Destinations Association.
Dalfonso said Illinois needs more resources to compete for visitors—domestic, international, business and leisure. He stressed that decisions made now will impact the hospitality and tourism industry for decades.
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