American States Feel The Hit Due To Trump Trade War

Wisconsin is one of the American states which still has its hopes pinned to Donald Trump. It is one of those economies that derives its output from farming and factories, both industries worst hit this term, thanks to Trump’s trade wars.

Other states that have been affected include Indiana, Iowa, Kentucky and Louisiana.  There is an evident slowdown on production in these states, due to the pull down of prices and oversupply which was never consumed for one or the other reason.

 Wisconsin’s dairy sector has also taken a big hit with a reported 634 of the state’s roughly 8,000 dairy farms being closed down this year itself. The trade war with China is to be solely blamed for low exports of milk and dairy products.

According to the Bureau of Economic Analysis, manufacturing has also been hit by tariffs and trade uncertainty. Wisconsin factory payrolls are down 1.6% in the past year. State factory output grew at a 0.5% annual rate in the nine months through June, compared with a 4.4% annual rate in the preceding nine-month period.

Wisconsin has been choosing Democrats in the seven previous presidential elections through 2012. But in 2016, they chose Donald Trump who won by a 22,748-vote edge, thanks largely to his appeal for blue-collar voters. What has now happened is that the common man is finding it tough to believe that it is actually their whole economy which has gone for a toss, with Trump’s immature experiments with trade relations worldwide.

The state has a gradually ageing population which is right now juggling jobs between farm and manufacturing. But most company owners are happy right now, because the loss of a farmer might be a good earning for a manufacturing unit. But the same is not true visa-versa. Also, with aging population, business owners might prefer younger lots. This is, in turn going to affect the output and industry layouts in Wisconsin, unless the economy can bounce back to Trump’s silly endeavours .