Jack Lavin, President and CEO of the Chicagoland Chamber of Commerce, spoke on WTTW’s "Chicago Tonight" concerning the impact of newly announced global tariffs on the economy of Illinois and the United States. Lavin voiced concerns about the economic consequences these tariffs could have, particularly in Illinois, where manufacturing and international trade significantly contribute to the state’s economy.
During the interview, Lavin shared the Chamber's stance on the tariffs, arguing against their implementation. “We feel that imposing blanket tariffs is not the way to go,” he said. Lavin stressed that such tariffs were "poorly planned and disorganized," predicting they would raise costs for businesses and consumers and disrupt supply chains.
Lavin explained that 15% of Illinois' economy is based on manufacturing with supply chains heavily reliant on international trade. Illinois ranks as one of the top exporting states in the nation, he noted, with exports supporting over 800,000 jobs and 400,000 jobs linked to foreign direct investment. Consequently, the tariffs could significantly impact the state’s economy.
He expressed concerns about the instability these measures create, “Businesses like stability. This has created a lot of instability." Lavin also acknowledged situations where targeted tariffs might be beneficial, particularly regarding intellectual property protections, but criticized broad, general tariffs. “We need to make sure other countries aren’t imposing tariffs on our [exports] that are unfair,” Lavin said.
Lavin mentioned growing anxiety among consumers and businesses, noting its impact on spending. “We’ve started hearing [from consumers] that this cloud is hanging over the horizon.” He spoke about the potential self-fulfilling prophecy of reduced economic activity as consumers and businesses become more cautious with their spending.
International tourism, according to Lavin, is already seeing negative effects. He claimed Chicago has been slow in recovering in this sector and highlighted an estimated 20% decline in Canadian visitors, impacting local and state tax revenues.
Lavin closed with a caution about the destabilizing effect of the tariffs, saying, “You have the tariff pulled back, then you have the tariff again. It creates instability.”
A statement from the Chicagoland Chamber of Commerce on April 4 reiterated its opposition to blanket tariffs and emphasized the importance of promoting growth and creating common-sense regulations. "Chicagoland’s business community is proud to be among the leading trade partners around the globe," the statement noted.