Wisconsin Small Businesses Struggle as Economic Woes Shape House Race 2026

Small businesses in Wisconsin’s third congressional district are facing a harsh economic reality, with many struggling to stay afloat amid inflation, tariffs, and rising costs. The challenges have become a central issue in the toss-up race for the U.S. House of Representatives, where Republican incumbent Derrick Van Orden and Democratic challenger Rebecca Cooke are vying for votes.

Economic Pressures Force Small Business Closures

After 18 years in business, Erin Klaus is closing her storefront, a handmade artisan market in downtown Eau Claire, at the end of the year. She opened Tangled Up in Hue amid a recession, during a time when downtown was “kind of a ghost town,” weathering construction and the pandemic. But the current economic crisis proved too much.

She’s seen a downward trend in sales for two years, and was dipping into her own pocket from her other job, as the executive director of business non-profit Downtown Eau Claire Inc, to pay staff. “This is the first time it’s out of my control to save my business,” she said. “It just feels so desperate right now for a lot of our small business owners … From the tariff wars to inflation to cost of living to healthcare, I mean, honestly, there’s no money left in the bucket at the end of the day for regular folks and, unfortunately, that means our regular folks who run businesses, too, are just not able to kind of hang on any longer.”

Political Battlefield: Third District Race

These economic woes feature heavily in the toss-up race for the U.S. House of Representatives in western Wisconsin’s third district, where Eau Claire is located. Republican incumbent Derrick Van Orden has stuck closely to Donald Trump and defended the administration’s record, while Democratic challenger Rebecca Cooke is making a third run at the seat by tapping into, and commiserating with, economic despair among voters.

The district, which includes Eau Claire, La Crosse, and other communities, has traditionally leaned Republican but is now considered a key battleground. Van Orden, a former Navy SEAL, has emphasized his support for small businesses and deregulation, but critics argue that his alignment with Trump’s policies has not addressed the root causes of the economic strain.

Key Factors Driving the Crisis

Several factors contribute to the economic strain on small businesses in the region. The ongoing tariff wars have increased costs for imported goods, while inflation has eroded purchasing power. Additionally, the rising cost of living and healthcare premiums have squeezed both business owners and their customers.

• Inflation has driven up prices for raw materials and supplies, reducing profit margins.
• Tariffs on imported goods have increased costs for businesses that rely on foreign products.
• Healthcare costs continue to rise, burdening small business owners who provide insurance for employees.
• Labor shortages in certain sectors have forced businesses to offer higher wages, further straining budgets.
• Decreased consumer spending due to cost-of-living increases has led to lower sales.

Comparing the Candidates’ Approaches

Van Orden and Cooke offer contrasting visions for addressing the economic challenges. Van Orden supports extending Trump-era tax cuts and reducing regulations, arguing that these measures will stimulate growth. Cooke, on the other hand, advocates for targeted relief for small businesses, including tax credits and investments in workforce development.

Voices from the Trenches

Local business owners like Klaus are skeptical of political promises. “I don’t think either party has a magic wand,” she said. “But we need someone who understands that small businesses are the backbone of our communities and will fight for us.”

Other owners echo her concerns. A restaurant owner in La Crosse noted that foot traffic has declined as customers tighten their belts. A hardware store owner in Eau Claire said that tariffs have made it difficult to stock affordable products. These stories underscore the widespread nature of the problem. The background to this story is set out in World Cup End for England: Tuchel Faces Harsh Reality. A related thread runs through Small Wisconsin City Blocks Secretive $1.6B Datacenter Project. Earlier coverage in UK Inflation Falls to 2.6%: Key Impact on Your Finances shows how the argument developed.

What to Watch Next

As the election approaches, both candidates are ramping up their outreach to small business owners. Van Orden has scheduled roundtable discussions, while Cooke has launched a small business advisory council. The outcome of the race could hinge on whether voters believe either candidate can deliver tangible relief. A closer look at the same subject appears in Verifactu Delay: Why Traditional Businesses Struggle. Anyone following the wider picture can start with Kevin Warsh Jackson Hole Speech: Fed Inflation Fears and Market Impact. The same theme surfaces in Bangkok Floods 2025: Urban Crisis and Economic Impact, which takes a different angle.

Meanwhile, Klaus and other owners are making hard choices. Some are cutting hours, others are laying off staff, and many are considering closing their doors for good. The economic despair is palpable, and it remains to be seen whether political action can reverse the trend. Context on how this played out before sits in IWC Portugieser Annual Calendar, facing challenges. A companion piece, Sister Berates Half Siblings Over Financial Issues She’s Facing, Gets A Reality Check About Being An Affair Child, approaches the same subject from another angle.

FAQ

What is causing small businesses in Wisconsin to close?

A combination of inflation, tariff wars, rising healthcare costs, and decreased consumer spending has created a perfect storm for small businesses. Many owners are dipping into personal savings to stay afloat, but ultimately cannot sustain the losses.

How is the third district race addressing these issues?

Republican Derrick Van Orden emphasizes tax cuts and deregulation, while Democrat Rebecca Cooke focuses on targeted relief and workforce investment. Both candidates are actively courting small business owners, recognizing their influence in the toss-up race.

What can small business owners do to survive the current economic climate?

Owners are advised to cut unnecessary expenses, seek local grants or low-interest loans, and diversify revenue streams. Community support, such as shopping local, also plays a crucial role in keeping businesses afloat.

Why is this district considered a toss-up?

The third district has a mix of rural and urban areas and has historically swung between parties. Economic anxiety among small business owners and working-class voters has made it a key battleground in the fight for control of the House.

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