As the U.S. tariff landscape shifts by the week, the Chicago region’s business community faces rising costs, a volatile supply chain, and growing uncertainty.

Tariffs of up to 145% on Chinese imports, combined with broad 10% duties across global partners, are reverberating through the region’s economy — and into the wallets of everyday consumers.

As the city and region’s economic development leader, World Business Chicago is tracking these developments closely to ensure our network of business leaders and decision-makers remains informed and prepared.

This week, the Chicago Sun-Times spotlighted Freedman Seating Co., a fourth-generation Chicago manufacturer and valued WBC partner. The company, which employs 700 people on the West Side, is struggling to absorb skyrocketing costs.

“I’ve never seen a supply shock like this in my working lifetime,” said CEO Craig Freedman. “We are scrambling… just to keep our supply chain rolling in.” “Who loses out? We do,” he added. “You will see that in industry after industry.”

Freedman Seating has long invested in community workforce development and participated in WBC-led manufacturing tours and convenings. Their story underscores just how personal, and local, these national policy shifts become.

Read the full story by Amy Yee in the Chicago Sun-Times

The WBC Research Center has modeled the potential economic impacts of the current tariff environment on Chicagoland:

• $9.2B GDP decline with a 1% national growth drop (IMF forecast)
• $3B in GDP losses, 11,800 jobs, and $2.95B in exports at risk from retaliatory tariffs
• Up to 15,000 jobs could be lost despite some reshoring
• Over 1 million fewer passengers projected through O’Hare, with 300,000+ fewer international visitors to Chicago
• Projected cost per American household from tariffs: $4,600–$4,700 annually, up from $3,800 under earlier plans (Yale Budget Lab)
• Roughly half of U.S. adults believe tariffs will raise prices “a lot,” with another 30% expecting a moderate increase (AP-NORC Poll, see link below.)

Industries expected to be most impacted include EVs, pharmaceuticals, agriculture, and retail. Meanwhile, 35% of local supply chain leaders are already raising prices, and 70% of CEOs disapprove of current tariff approaches.

In parallel, we encourage you to read a recent Op-Ed authored by Matthew D. Wilson, Ph.D. (UIC), Nichola J. Lowe, Ph.D. (UMN), and Nepal Asatthawasi (Urban Manufacturing Alliance) on the dismantling of the federal Manufacturing Extension Partnership (MEP) — a program designed to help small- and medium-sized manufacturers thrive under exactly these kinds of disruptions.

As the #2 manufacturing metro in the U.S., Chicagoland has a vested interest in preserving programs like MEP.

As mentioned above, recent national polling underscores just how deeply Americans are feeling the effects of economic uncertainty. A new AP-NORC survey conducted by the University of Chicago finds that 6 in 10 U.S. adults disapprove of the nation’s handling of international trade, and a majority believe the tariff policies will lead to higher consumer prices. Notably, 76% expect tariffs to raise the cost of goods, while only 4 in 10think they will boost domestic jobs.

While concern spans political lines, views on the economy and tariffs remain deeply polarized by party affiliation. Read the full AP-NORC survey results here.

At World Business Chicago, our commitment is to objectivity and clarity. As the city and region’s economic development agency, we provide fact-based analysis, timely insights, and an informed point of view to help businesses navigate uncertainty and plan with confidence.

We encourage you to follow us on social media as we continue to share updates, perspectives, and analysis as this important story continues to unfold.

This week’s Business Pulse powered by LinkedIn was developed in collaboration with WBC leaders Kyle T. Schulz, Hannah Loftus, and Wendy Wu, whose research and insights continue to shape our understanding of the region’s evolving economic landscape.