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“I am a Tariff Man,” President Donald Trump famously tweeted in December. That persona is a sharp break from presidents of the past, says Menzie Chinn, a UW professor of public affairs and economics. Trump and other protectionists aim to shield domestic industries from foreign competition by putting taxes — known as tariffs — on imports.

Last spring, the administration imposed steep tariffs on imported aluminum and steel, hoping to bolster U.S. industries and employment. An unintended consequence, Chinn notes, is that American companies relying on these materials — notably within the construction industry — now face higher costs. The tariffs also spurred retaliation on American exports. “I think it’s a misunderstanding in Trump’s mind of what trade protection does,” he says. Overall, Chinn and many trade experts predict a net negative effect on U.S. employment.

What worries Chinn most is how the tariffs were implemented. The administration invoked rarely used trade laws administered by the executive branch, leading to short- and long-term uncertainty. In uncertain times, companies delay expansion and lenders give fewer loans, potentially slowing the economy.

In an increasingly global and technological marketplace, products often are made up of many different parts that are shipped from all over the world. Adding even a small tariff on pieces that cross borders multiple times can create a much larger disruption than in the past.

Ultimately, Chinn believes we will come to find that restricting trade is costly.

NorthStar Consulting Group, 2015

Call it the Bucky effect.

UW–Madison — along with its affiliated organizations and start-up companies — has a $15 billion impact on Wisconsin and supports 193,310 jobs, according to new data released this spring.

The report from NorthStar Consulting Group highlights the importance of the university to the state’s financial well-being during an ongoing and vigorous public debate about how big a cut the UW System can withstand in the coming two years to help balance the state budget.

UW–Madison’s economic impact on the state was measured in two ways. The first is direct spending by faculty, staff, students, visitors, and university operations. Visitors alone spend more than $650 million a year. Direct spending includes $234 million on food, $122 million on construction, $101 million at eating and drinking establishments, $100 million on insurance, and $77 million on auto repair and service, and $62 million given to churches and charities.

The second measure looks at businesses that benefit from that spending and how, in turn, their own spending results in jobs and tax revenue.

UW-Madison Data Digest

The university’s economic activity also generates $688 million in state and local tax revenue, and more than 40 percent of that comes from taxes UW–Madison faculty and staff pay on their incomes and the things they buy. The money that the campus community and visitors spend generates jobs, which then yield millions in income taxes, sales taxes, and property tax payments for Wisconsin.

The report was an update to a study that NorthStar has conducted six times since 1971.