Trump Tariffs Impact Western Springs Borrowing

WESTERN SPRINGS, IL – No one specifically mentioned Donald Trump or his tariffs during this week's discussion over Western Springs' borrowing of money for a stormwater project.

But Trump's trade policy is having an effect nonetheless.

For the time being, the village is delaying the sale of up to $6 million in bonds for a project in the Springdale neighborhood.

That's because of market volatility since earlier this month after Trump's "Liberation Day," in which he declared tariffs against virtually every country in the world.

The bond market's interest rate increased as a result, but declined somewhat after Trump delayed many of the tariffs.

"We haven't seen any bond sales in the state of Illinois since April 4," John Mastandona, the village's finance director, told the Village Board. "Everybody's kind of postponed."

The hike in the interest rate in one day was the worst for the bond market in more than three decades, Mastandona said.

"It's just new territory for everybody," he said.

At the meeting, the board voted unanimously to authorize a bond sale when economic conditions improve.

The village plans to pay back the debt through its stormwater fee, which was imposed on residents a couple of years ago.