Article Summary –
Erin Klaus, owner of Tangled Up in Hue, and Robbie Young of Coulee Bicycle Company, are both experiencing financial struggles due to economic policies, specifically Trump’s tariffs, which Klaus claims are unsustainable and are preventing money from circulating in local communities. A report from the Tax Foundation indicates that these tariffs, seen as the largest U.S. tax increase since 1993, are raising prices for consumers, reducing income and employment, and causing lower economic output. While some Republicans have joined Democrats to challenge the tariffs, others, like Rep. Derrick Van Orden, argue they are necessary to level the playing field, although they acknowledge the negative impact on certain industries until better trade deals are in place.
In the past two years, Erin Klaus reported a 30% dip in revenue at her Eau Claire art gallery, Tangled Up in Hue. Her staff numbers have dwindled, and she is now taking a full-time job elsewhere.
However, transactions at Tangled Up in Hue remain consistent annually, indicating strong community support despite reduced spending.
“It highlights a crucial issue,” Klaus noted. “Money isn’t circulating locally, which will increase pressure unless changes occur soon.”
Klaus, also heading Downtown Eau Claire, criticized Trump’s economic policies, stating they threaten small businesses and the American dream.
“Without preservation, nothing lasts,” she said, arguing current tariffs hinder community efforts.
The Tax Foundation’s report indicates Trump’s tariffs will cost U.S. households $1,000 in 2025, rising to $1,300 in 2026. The tariffs are the largest tax hike (0.54% of GDP in 2026) since 1993.
“Studies show tariffs increase prices and reduce goods and services for U.S. businesses and consumers, leading to lower income and employment,” the report says.
Trump’s tariffs, a major part of his administration, include a 10% charge on imports from almost every country after declaring a national emergency in April 2025. Trump claims these tariffs save the U.S. economy.
House Republicans have mostly sided with Trump against Democrat efforts to repeal tariffs, but six Republicans joined Democrats to oppose tariffs on Canada.
Wisconsin’s GOP members abstained. Rep. Derrick Van Orden argued tariffs “level the playing field” and the Trump administration would support industries until better trade deals are reached.
If the Canada tariff measure passes the Senate, it may face a presidential veto. The U.S. Supreme Court will rule on Trump’s tariff authority.
Supporting 100-150 local artists, Tangled Up In Hue faces soaring costs for cotton and fabrics, impacting already-tight margins.
Extreme cold forced Klaus to close for a day, prompting her to share the struggles of western Wisconsin businesses on social media, emphasizing local support’s importance.
“Supporting local is a tangible action,” she wrote. “In Eau Claire, every purchase helps protect our community.”
Robbie Young, owner of Coulee Bicycle Company, faces similar challenges with Trump’s tariffs affecting his globally dependent supply chain.
“Early 2025 kept prices stable, but soon suppliers increased prices by 5-6% weekly,” Young explained. As both a consumer and owner, he feels federal policies’ impact.
“Seeing wholesale prices soar is shocking,” Young said. Recent bike chain orders were double past prices, reflecting global supply challenges.
Young’s message to politicians: “Recognize the global supply chain reality.”
“If American manufacturing is the goal, current approaches are flawed,” he stated.
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