Jack Lavin, President and CEO of the Chicagoland Chamber of Commerce, joined WTTW’s Chicago Tonight to share the business community’s concerns over the newly announced global tariffs and their potential economic consequences for Illinois and the nation.
When asked about the Chamber’s reaction to the tariffs, Lavin was clear in his criticism.
“We feel that imposing blanket tariffs is not the way to go,” Lavin said. “It was poorly planned and disorganized. It’s going to raise the costs for businesses, drive up costs for consumers, and impact the supply chains for our businesses.”
Lavin emphasized that the effects of the tariffs would be particularly significant in Illinois, where manufacturing and international trade play a central role in the state’s economy.
“Fifteen percent of our economy is manufacturing. All their supply chains—parts go back and forth across borders—that’s going to be impacted,” he explained. “Illinois is one of the top exporting states in the nation. We’re number four in the country and number one in the Midwest. Our exports support over 800,000 jobs and we have nearly 400,000 jobs impacted by foreign direct investment. So, this will have a significant impact on our economy.”
Lavin also spoke about the uncertainty these measures create, adding, “Businesses like stability. This has created a lot of instability. And we’re a consumer-driven economy. It’s going to raise costs not just for consumers, but for businesses of all sizes and all sectors.”
Pressed for an example where tariffs might have a positive effect, Lavin acknowledged targeted efforts—such as those aimed at intellectual property protections from countries like China—but reiterated that a broad, across-the-board approach is misguided.
“We need to make sure other countries aren’t imposing tariffs on our [exports] that are unfair,” Lavin said. “But doing across-the-board tariffs on all countries and sectors is not the right way to go because there’s not a problem in every area. There are problems in in certain areas, so we should focus on those. We should focus on growth policies, driving innovation, and supporting our workforce as our number one asset.”
Lavin noted growing concerns among both consumers and businesses, with uncertainty already having an effect on spending.
“We’ve started hearing [from consumers] that this cloud is hanging over the horizon,” he said. “Consumers are saying, ‘Maybe we’re not going to spend as much money because I don’t know what’s going to happen in one month, two months, three months.’ If consumers and businesses are pulling back, that becomes a self-fulfilling prophecy that leads to less economic activity.”
He highlighted international tourism as one area already feeling the pinch.
“Chicago’s been a little slow in coming back in that area,” Lavin said. “But international tourists spend a lot of money. We’re creating bad will around the world. Canada, for example, is our number one trading partner and a major tourism source. Some estimates show a 20% decline in Canadian visitors. That affects immediate sales tax revenue, hotel tax revenue—real money coming to the city and the state.”
Lavin concluded with a warning about the confusion and economic harm the rollout of the tariffs is creating: “You have the tariff pulled back, then you have the tariff again. It creates instability. Small business owners, large business owners, and consumers don’t know what to do. So they pull back—and that hurts the economy.”
Check out the full story by WTTW.
The Chicagoland Chamber of Commerce released the following statement regarding global tariffs on Friday, April 4:
“The Chicagoland Chamber of Commerce is passionate about expanding economic growth, opportunity, and jobs for all our communities here in Illinois and across the nation. Imposing blanket tariffs only serves to increase costs for businesses of all sizes and industries, raise the price of everyday goods for families, and disrupt the supply chain and the ability for our companies to plan for the future. Rather than imposing broad tariffs, we encourage elected officials to focus on policies that promote growth, create common sense regulations, and strengthen our skilled and dynamic workforce. Chicagoland’s business community is proud to be among the leading trade partners around the globe and we stand ready to work with elected officials to find real solutions that build on our successes and continue to drive innovation, growth, and resiliency for decades to come.”