Wisconsin Manufacturers & Commerce says Trump tariffs will challenge state businesses

The head of Wisconsin’s top business lobbying group says the Trump administration’s tariffs will raise costs, but Wisconsin businesses “will figure it out.”

Wisconsin Manufacturers & Commerce president Kurt Bauer said President Donald Trump seems intent on pursuing his plan to restructure international trade, and even if the group took a stand against the new tariffs, he’s not sure the “White House is going to listen to us anyways.” 

During a Monday appearance on WPR’s “Wisconsin Today,” Bauer said a December survey of business owners showed a “surprisingly high percentage were in favor of the tariffs” on Chinese-made goods.

“The majority were not in favor of tariffs against Canada and Mexico,” Bauer said.

A tariff is a tax on goods imposed by the country that imports them.

Bauer noted the survey was conducted before Trump announced the full scope of his tariff regime.

Trump issued widespread tariffs on all imports coming into the U.S. on April 2, which he designated “Liberation Day.” He has said the goal is to address trade deficits with other nations, bring new revenue to the U.S. Treasury to pay for tax cuts and boost investments in American manufacturing.

Wisconsin businesses ‘will figure it out’

Bauer said some Wisconsin businesses are excited about new opportunities to produce and sell things locally rather than relying on supply chains from overseas.

“The ones that are going to suffer are the ones that could have their market access restricted, and that’s a concern for us,” Bauer said.

He said Wisconsin’s manufacturers, farmers and small businesses proved their resilience during the global COVID-19 pandemic. Bauer said in this case, companies that need access to components or raw materials from overseas may seek ways to purchase them from within the U.S. or from countries with relatively lower tariffs.

“They’ll figure it out, but there will be some challenges,” Bauer said. “We will see costs go up. There’s no question about that, and that’ll have to be priced out at some point throughout the product.”

Bauer said WMC would prefer to see tariffs “come down globally,” and the group doesn’t want to see trade barriers prevent Wisconsin businesses from selling their products around the world. Many countries have already announced retaliatory tariffs on U.S. goods that will drive their costs up overseas. In Wisconsin, that includes farm and construction equipment manufacturers.

Bauer said members have had conversations with Wisconsin’s congressional delegation and met with Trump administration officials in February, before the full scale of the tariffs were announced.

Bauer said it’s unclear whether Trump is planning to negotiate lower tariffs with other countries or keep them in effect long term. On Sunday, Trump and Commerce Secretary Howard Lutnick both said tariffs were here to stay, with Trump referring to them as “medicine” that will fix the U.S. economy.

But when asked what Bauer would need to see in order for WMC to take a to take a stance against tariffs, he deflected.

“Well, I don’t know that the White House is going to listen to us anyways,” Bauer said. “One way or the other, I think the president seems very intent on pursuing this course.” 

Wisconsin’s congressional delegation split by party on Trump tariff plan

Since Trump’s tariffs were announced, U.S. stock prices have swung wildly and the Dow Jones Industrial Average has fallen by around 4,000 points in five days. Democrats among Wisconsin’s congressional delegation have accused the president of tanking the American economy, while Republicans have been mostly quiet or supportive of Trump’s plan.

On Monday, U.S. Rep. Gwen Moore, D-Milwaukee, accused her Republican colleagues of being “silent” while “Trump is wrecking the economy and making life worse for everyday Americans.”

“Insiders get a heads up and rich, Americans get a pink slip,” Moore said. “We need fair economic and trade policies — not this chaotic lawless rule.”

The same day, U.S. Rep. Derrick Van Orden, R-Prairie du Chien, shared a tweet mocking Wall Street traders of being surprised by the tariffs after Trump campaigned on them.

U.S. Rep. Tom Tiffany, R-Hazelhurst, has been a vocal defender of Trump’s tariff plan. In a Friday social media post, he accused Democrats of importing “millions of illegal aliens to take YOUR job.”

“Now, they oppose fair trade policies that put YOUR job first,” Tiffany said. “Democrats don’t care about the American worker.”

Republican U.S. Sen. Ron Johnson, another staunch Trump ally, has called the tariffs a high-risk proposition. In a social media post Monday, he said the president should accept an offer from the European Union for what has been described as a “zero for zero” tariff deal.

“At some point, you have to take YES for an answer,” Johnson said.

A bipartisan bill introduced in the U.S. Senate would require Trump to notify Congress of any new tariffs that would then have to be approved by the chamber. As of Monday, neither Johnson or Democratic U.S. Sen. Tammy Baldwin had signed on and Trump has promised to veto the legislation.