Small firms in Wisconsin battle economic strain before midterms
Owners in Eau Claire and Chippewa Falls say tariffs, healthcare costs and weak sales are squeezing them as voters head to the polls.
Key points
- Erin Klaus will close her Eau Claire artisan market at the end of the year after 18 years.
- Falling sales and rising costs left her unable to keep paying staff without using her own income.
- Tariffs, healthcare premiums and weaker spending are cited by several owners in western Wisconsin.
- The third congressional district is a toss-up between Republican Derrick Van Orden and Democrat Rebecca Cooke.
Erin Klaus will close her storefront at the end of this year, according to The Guardian. The business, Tangled Up in Hue, is a handmade artisan market in downtown Eau Claire, Wisconsin, and it has operated for 18 years. Klaus said two years of falling sales, combined with the current economic crisis, left her dipping into her own income to pay staff.
Klaus described the situation as the first time she could not save a business she owned. She said many small owners feel desperate, pointing to tariffs, inflation, the cost of living and healthcare as pressures that leave ordinary households with little money at the end of the month.
Economic strain in a tight race
The economy is a central issue in the contest for the third congressional district in western Wisconsin, which includes Eau Claire. The seat is considered a toss-up. Republican incumbent Derrick Van Orden has stayed close to Donald Trump and has defended the administration’s record. Democratic challenger Rebecca Cooke is making her third attempt at the seat and is focusing on working people, farmers and business owners.
Other owners in the district describe similar problems. Amy Burke Lepper runs an interior design business in Chippewa Falls as well as a retail shop. She said tariffs have raised the cost of cabinets from a Canadian maker she has worked with for more than two decades, and some clients have delayed building homes.
Burke Lepper also reported that her family’s monthly health coverage premium climbed from more than $1,000 to close to $3,000. As a result, she is now uninsured, a situation she has never faced before. She does not plan to close her business, but she chose to speak publicly so people understand how federal policies affect small firms like hers.
What the candidates are saying
Van Orden has defended the Iran war as necessary, while acknowledging that it makes it harder for Republicans to hold the House and Senate. House speaker Mike Johnson campaigned with him this week. Van Orden said he has been a strong supporter of Trump and argued that the president has accomplished a great deal with a Republican-led Congress.
The Guardian reported that Van Orden did not respond to its requests for an interview or comment. Cooke, who grew up on a dairy farm and once ran a small business in Eau Claire, says her background helps her understand local hardship. She still works as a waitress and says fewer customers are eating out because they lack spare money.
- Cooke wants to extend expired Affordable Care Act tax credits for three more years.
- She supports a public option for healthcare and expanding Medicare to cover vision, dental and hearing.
- She calls for an end to the Iran war, which she says would help lower prices.
- She also backs stronger antitrust enforcement and limits on AI-based pricing.
Why the race matters
The third district, made up mostly of rural and suburban areas, backed Barack Obama twice and Trump three times. It has also sometimes voted Democratic in other races on the ballot. Democrat Ron Kind held the seat for more than 20 years before Van Orden won it in 2022.
Tens of millions of dollars in outside spending have flowed into the race from both parties. Trump administration officials have travelled to the district several times to defend their record. Cooke lost by seven points in 2022 and by less than three points in 2024.
Klaus, a Democrat, says she will vote for Cooke. She hopes more residents will connect their federal votes with local economic pain. She also said that electing a new representative would not quickly solve the problems facing families and businesses.
Whatever happens in the midterm elections on Tuesday, the result will come too late for Klaus’s shop. Tangled Up in Hue will keep its doors open through the end of the year, allowing its many artists to sell off remaining stock during the holiday period. Klaus plans to keep some other parts of the business running.
Frequently asked questions
Why is Tangled Up in Hue closing?
Owner Erin Klaus says two years of falling sales and the current economic crisis made it impossible to keep paying staff without using her own income. The store will close at the end of the year.
Which race is being contested in Eau Claire?
Eau Claire is in western Wisconsinu0026#039;s third congressional district. Republican incumbent Derrick Van Orden faces Democratic challenger Rebecca Cooke in a race described as a toss-up.
What issues are voters in the district raising?
Business owners cite tariffs, inflation, the cost of living and healthcare costs. Cooke has also proposed extending expired healthcare tax credits and ending the Iran war to lower prices.
Sources
- The Guardian: ‘In the trenches’: Wisconsin’s struggling small businesses could turn a Trump ally’s district blue
This article was written with the help of AI from reports by the outlets listed above. See our Editorial Policy. Spotted a mistake? Tell us.
