“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Tariffs remain the big topic of conversation not only locally, but also across the globe. More on that below. First, a topic of note closer to home.
Illinois lawmakers face another self-imposed deadline by the end of the week. The House of Representatives is expected to send potentially hundreds of bills to their colleagues in the Senate and vice versa. So far, the House has passed more than 100 bills and the Senate passed several dozen bills late last week. Nearly all had unanimous support from senators.
The bills include a little bit of everything. No big news yet on transit reform that has been a recurring topic in this update. It remains to be seen whether it will come up at the last minute of this session as it continues to be negotiated or at some point sooner.
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Executive Order: Tariffs
President Donald Trump followed through on his pledge to impose sweeping tariffs aimed at boosting the U.S. economy. His executive order set a baseline 10 percent tariff on imports and increases levies on goods from countries considered “bad actors.” The announcement immediately triggered a sharp drop in stock futures and a decline in oil prices.
Today however, in a dramatic turn, President Trump posted on Truth Social that tariffs on Chinese imports would be raised to 125 percent. However, he also announced a 90-day pause on many of the so-called “Liberation Day” tariffs that had started to strain global trade earlier today.
The move marks a significant shift after several days of market turmoil and growing fears of inflation and recession. Markets reacted positively: as of 2 p.m., the Dow had surged 7.1%, the S&P 500 rose 8.3%, and the Nasdaq jumped 10.3%.
Despite the partial retreat, Trump is keeping the 10 percent baseline tariff on all countries intact. Combined with the increased duties on China, the U.S. trade policy remains far more protectionist than before Trump took office.
Treasury Secretary Scott Bessent described the shift as a calculated strategy: “No one creates leverage for himself like President Trump,” he said. White House Press Secretary Karoline Leavitt echoed the sentiment, telling reporters, “Many of you in the media clearly missed The Art of the Deal.” Ironically, just a day earlier, she had stated there would be no delay in implementing the tariffs.
Trump’s latest move signals a deepening trade battle with China. In response, China announced it would raise tariffs on all U.S. exports to 84% starting tomorrow, according to Bloomberg. The tit-for-tat escalation threatens to severely disrupt U.S.-China trade. And according to WSJ’s Lingling Wei, China has additional tools it could deploy against American businesses.
The European Union has also responded with tariffs on $23 billion worth of American products, with the first wave set to take effect Tuesday, according to the AP. Meanwhile, Canada has started imposing retaliatory duties on American-made autos.
Despite the growing tensions, there are signs of diplomatic movement. Treasury Secretary Bessent noted that Vietnamese negotiators were arriving in Washington, and India has reached out to begin talks. U.S. Trade Representative Jamieson Greer said he’s in contact with officials from Ecuador, Mexico, South Korea, and the EU. Swiss President Karin Keller-Sutter also spoke with Trump today, later posting on X: “Looking forward to working out solutions in the very near future.”
Stocks See Biggest Rally as Trump Pauses Some Tariffs Following a Massive Sell Off
U.S. stocks posted their biggest rally since March 2020 after President Donald Trump announced a temporary pause on the highest tariffs for countries that have not retaliated against American trade actions—a list that notably does not include China.
As of 1:25 p.m. in New York, the S&P 500 had surged more than 7%, the Nasdaq 100 jumped 9%, and the Dow Jones Industrial Average rallied nearly 6%. Meanwhile, yields on short-term Treasuries fell, with the two-year yield dropping to 3.8%. It’s worth noting that stock market circuit breakers, which are designed to curb extreme volatility, only trigger during sharp declines—not rallies like this one.
In a post on Truth Social, Trump said: “I have authorized a 90-day pause, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
This marks the first major rebound in the markets since Trump initially announced tariffs on U.S. trading partners, a move that sent stocks into a tailspin earlier in the week and briefly pushed markets into bear territory.
However, the trade battle with China continues to escalate. In retaliation to Washington’s newly imposed 104% tariff on a wide range of Chinese imports, Beijing has raised its own tariffs on U.S. goods to 84%, effective April 10.
U.S. Chamber Says Accelerate the Pro-Growth Agenda to Boost the Economy
We all want stronger economic growth because we know it helps Americans thrive. “When the economy grows, productivity and investments grow; employment opportunities and consumer choice expand; incomes and buying power increase; and education, infrastructure, and safety improve,” U.S. Chamber President and CEO Suzanne P. Clark said in the State of American Business 2025 keynote address.
By advancing a pro-growth agenda instead of imposing tariffs, our leaders can raise workers’ wages, support families, and strengthen businesses. “What we have heard from businesses of all sizes, across all industries, from around the country is that these broad tariffs are a tax increase that will raise prices for American consumers and hurt the economy,” said U.S. Chamber Executive Vice President Neil Bradley.
Franco and Wendy Salerno, owners of Darianna Bridal and Tuxedo in Warrington, PA, are among the many businesses speaking out about the impacts tariffs are having on Americans.
“Most of everything we sell here is made overseas,” said Wendy Salerno. She and her husband, Franco, spoke with ABC News about how tariffs are affecting their small business, a 2024 CO– 100 honoree. Franco said they will try to absorb as much of the increased costs from tariffs, but prices will rise.
Instead of tariffs, policymakers should focus on re-balancing regulations, unleashing American energy, opening more markets for U.S. businesses and workers, and extending our current tax policy, Bradley told CNBC on Wednesday. The 2017 Tax Cuts and Jobs Act spurred local businesses to invest in workers and communities. Congress should prevent a historic tax hike and make these reforms permanent.
Beneficial Ownership Update
Small businesses saw a major victory in the fight against beneficial ownership reporting requirements. The Financial Crimes Enforcement Network (FinCEN) removed requirements for U.S. small businesses to report Beneficial Ownership Information (BOI) under the Corporate Transparency Act.
There has been much uncertainty over this new requirement and its extreme penalties for small businesses that did not comply by the end of 2024. This unnecessary mandate impacted more than 32 million small businesses nationwide. BOI reporting requirements were beyond burdensome and put personally identifiable information at risk on a new, untested government database.
Illinois Bill Would Mandate Weather-Related Protections for Workers
Illinois employers may soon face new state-mandated requirements tied to extreme weather conditions if House Bill 3762 becomes law. The bill, sponsored by Rep. Edgar González, Jr. (D-Chicago), aims to improve workplace safety during periods of excessive heat or cold by mandating specific employee protections and employer responsibilities.
Under the proposed Workplace Extreme Temperature Safety Act, regulations would kick in when:
- The heat index reaches 80 degrees Fahrenheit or higher
- The wind chill drops to 40 degrees Fahrenheit or lower
These thresholds would trigger a range of employer obligations, including required accommodations and the right of employees to refuse unsafe work conditions.
If passed, the legislation would require businesses to:
- Create and maintain weather safety plans, which could include access to warm beverages in cold conditions or shaded, climate-controlled rest areas during heat.
- Provide training to employees on safety procedures for extreme weather.
- Retain records of training and compliance for at least three years.
Regulations would apply to both outdoor and indoor workplaces.
The Illinois Department of Labor would be responsible for defining and enforcing what qualifies as “excessive” weather. Because weather conditions can vary significantly across relatively short distances, implementation may be complex.
“Say for example, you are a landscaper and you have one team in one town and another team 15 to 20 miles away. You can have a different heat index, based on a lot of factors,” said Noah Finley, Illinois State Director of the National Federation of Independent Business (NFIB).
Finley voiced significant concerns about the administrative burden the bill could impose—especially on small businesses. “These plans have to include a whole lot of things, from providing warm beverages to ensuring access to shade,” he said. “Tracking that so you’re safe from lawsuits would be a huge administrative burden for these small employers.”
He also warned the bill could open the door to frivolous lawsuits, even from individuals who aren’t employees. “Most small employers don’t have a legal team. They can be very easily targeted by so-called ‘interested parties’ for lawsuits,” Finley added.
HB 3762 passed the Illinois House Labor and Commerce Committee and is now up for consideration by the full House. If enacted, it would mark a significant expansion of workplace safety regulations based on weather conditions.
Bills of Note
HB 1278, VESSA passed the House 110-0-0. This bill provides that an employer shall not retaliate against an employee or deprive an employee of employer-issued equipment because the employee used employer-issued equipment to record domestic violence, sexual violence, gender violence, or any other crime of violence committed against the employee or a family or household member of the employee. Provides that an employer shall grant an employee access to any photographs, voice or video recordings, sound recordings, or any other digital documents or communications stored on an employer-issued device relating to domestic violence, sexual violence, gender violence, or any other crime of violence committed against the employee or a family or household member of the employee.
SB 2339 SFA 2, E-Verify was recommended to adopt in Senate Labor 13-5-0. This bill, as amended, provides that an employer enrolled in an Employment Eligibility Verification System, including the E-Verify program, shall not impose work authorization verification or re-verification requirements greater than those required by the Employment Eligibility Verification System. Provides that, if an employer receives notification from any federal agency or other outside third party not responsible for the enforcement of immigration law of a discrepancy as it relates to an employee’s individual taxpayer identification number or other identifying documents, guarantees specified rights and protections to the employee. Provides that nothing in the Act shall be construed to prohibit an employer from enrolling in any Electronic Employment Verification System, including the E-Verify program, whether voluntarily or as required or permitted by federal law (rather than as required or permitted by federal law). Provides that no penalties shall be imposed under the Act if the employer or prospective employer: (1) acts in good faith reliance on guidance issued by the Illinois Department of Labor or the federal Department of Homeland Security; or (2) makes a bona fide administrative error that does not affect an employee or prospective employee’s employment or pay.
We’re looking closely for some more bills as the week continues. A bill phasing out single use plastic bags could make its way through the Senate this week. We’re also watching to see if lawmakers in the House take up the “Homeschool Act,” after an amendment was filed Tuesday. That bill would put new oversight requirements in place on homeschool parents.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
[email protected]
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815.727.5373 direct