WICHITA, Kan. (KSNW) — According to a Canadian Chamber of Commerce report, Wichita is among the top 20 US cities reliant on exports to Canada.
In Wichita, aerospace and agriculture are the main sectors that Canada buys from.
Exports to Canada make up almost 4 percent of Wichita's GDP. The Tr
ump administration is placing tariffs on longtime trade partners in an effort to create better trade agreements.
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"There's most definitely gonna be a ripple effect," said Dr. Larry Straub, associate professor of management at Newman University. "This has blown apart long-standing relationships that have been decades and decades in the making."
Straub says the U.S. is playing a big game of chicken. While he says our country has a strong hold on international trade and could come out on top, he says the trade war will likely drive up inflation faster in the Wichita area.
Professor Straub says this could, in turn, cause stagflation, where tariffs drive up inflation but the economy is slow, so wages cannot keep up.
I spoke to aerospace manufacturers locally. The trade war is impacting everyone a little differently.
For some, the future is up in the air.
"Recently we've been noticing a lot of uncertainty," said Amir Etezazi, CEO of Etezazi Industries.
Etezazi says tariffs could be a good thing.
He says the trade war with Canada is causing international customers to hesitate before signing contracts with U.S. manufacturers. As a result, they're looking to other countries to source parts.
"We're gonna have the same issues with them not wanting to buy products from us," said Etezazi.
He says if the U.S. stops being a global player, it could tamp down innovations.
Meanwhile, Globe Engineering in Wichita mostly sells domestically.
Canadian exports only make up 2 to 3 percent of their total product.
"If I lost all my Canada work right now, we wouldn't lay anyone off, we wouldn't slow," said Jeff Teague, President and CEO of Globe Engineering. "We'd fill it with somebody else."
He says there's plenty of demand domestically, so he's not too concerned about tariffs.
"I don't think there's a hard, fast answer for some of this stuff," Teague said. "I think be patient see where it hits."
As for Amir, he says he's moving forward with plans to contract with more customers internationally anyway.
For now, the tariffs aren't affecting his bottom line. He says the full impact is yet to be seen as new contracts come up. ...read more read less