Business leaders left with more questions than answers with tariffs | Waukesha Co. Business News

WAUKESHA — Having “clear, consistent and predictable” policies make operating a business a smoother process, which is something that the Waukesha County Business Alliance advocates for on behalf of its members, it said. However, with the new tariffs under President Donald Trump’s “America First” and “reciprocal” trade policies, businesses in Waukesha County and beyond “are facing significant uncertainty and unanswered questions related to trade policy,” according to The Alliance.

The leadership at The Alliance, including President and CEO Amanda Payne, support clearly articulated policies, which allow businesses to be able to make better decisions.

With so much uncertainty surrounding tariffs imposed against imports to America and American exports, Waukesha County Business Alliance members declined to comment for this story.

Dale Kooyenga, president of the Metropolitan Milwaukee Association of Commerce, said he has spoken to more than 100 of its 2,000-plus members about the tariffs since Trump’s tariffs announcement two weeks ago. What he has learned is that most are worried.

“The vast majority have serious concerns about the confusion these changes are causing. There doesn’t seem to be a plan or endgame coming from Washington. Having some clarity, regardless of what those policy decisions are, would be helpful. You can’t make operational plans when you don’t know what your costs are going to be from one day to the next,” Kooyenga said on Friday.

Kooyenga called the tariffs a tax and said they could lead to higher inflation.

“A $600 billion tax will be a drag on the economy. $600 billion depletes more money from the economy than U.S. corporate taxes generate. It takes a creative mind to think tariffs of that scope would not lead to inflation. Tariffs shouldn’t be a one-size-fits-all approach to trade policy,” he said. The tariffs are holding countries such as China accountable for some of its efforts that hurt American companies, like manipulating currency and stealing intellectual property, but Kooyenga questions the president’s approach, saying “a scorched-earth approach will hurt many businesses here at home who count on manufacturers there to do business.”

Support and advice

The MMAC is encouraging its members to share with them what kind of challenges they are encountering with the tariffs so they can be shared with the media, as well as elected officials and the executive branch. Not knowing the ins and outs of all of the industries members are involved in, the MMAC does not provide advice on how to navigate the economical landscape; however, they are offering advice on how to express their concerns to Washington. The MMAC can also discuss options available to members if they want to fight the legality of the “emergency” tariff executive orders.

To help these companies navigate the rough waters of trade and commerce, The Alliance is keeping tabs on tariff changes and “their impact on key industries, particularly manufacturing and construction. Transparency and timely information are essential to helping businesses navigate these changes. We’re committed to advocating for our members and keeping them informed throughout this process,” Payne said.

Sen. Tammy Baldwin, D-Wisconsin, has been more critical of Trump, even as she has sought tariffs and sanctions that would target places such as China who have had an unfair advantage. However, Baldwin said she has opposed across-the-board tariffs.

During her tenure as a senator, Baldwin said she has advocated for Wisconsin’s manufacturing industry and workers and recently has asked Trump for specifics on how the trade war will affect Wisconsin farmers.

“President Trump came into office promising to lower costs for Wisconsinites. Instead, his trade war is landing families and businesses with higher costs that make it harder to make ends meet and keep their doors open,” Baldwin said in an email. “I have long fought to stand up to trade cheats like China, bring back Made in America manufacturing, and level the playing field for workers, but raising costs on families and making it next to impossible for ‘Made in Wisconsin’ businesses to plan and grow for the future is not the answer.”

Impact on Wisconsin businesses

In the past, Baldwin sought for the Biden Administration to investigate unfair Chinese trade practices, such as state subsidies, that undercut American shipbuilders and workers. As a result of the research, penalties against Chinese shipmakers were implemented, according to her office. By using targeting tariffs, such as this one, Baldwin believes that the playing field can be leveled without passing high costs on to consumers.

Sen. Ron Johnson, R-Wisconsin, did not respond to a request for comment before deadline Friday.

Kooyenga said he spoke this week with a fourth-generation model railroad distributor who shared that a few of their products will nearly double in price due to the tariffs.

“Changes to the market like this could price a lot of people out of the hobby. We’re hearing stories like this from small businesses across many sectors that rely on importing goods and components to do business. Companies are in a ‘wait-and-see’ mode — when that happens, companies don’t invest in new product lines, facilities, markets or hire. Collectively, this will lead the economy into a recession,” he said.

Some small businesses, Kooyenga reports, are frontloading orders to pre-empt any further tariff impact, while other companies are waiting to see what happens before they make a move.

“The global economy has been built around just-in-time inventory best practices and the rapid increase in tariffs and deadlines will certainly disrupt logistics,” he said.