On Monday morning at
Lakefront Brewery, president and owner
Russ Klisch pulled out a letter he recently received from
Berlin Packaging, one of his can suppliers. The letter, which asked if the recipient was feeling stressed by tariffs, was accompanied by a stress ball.
“I thought it was appropriate that Berlin Packaging went to that extreme,” said Klisch.
Lakefront Brewery is one of eight small businesses that were represented at a Monday roundtable during which business owners vocalized how ever-changing federal tariff policies are impacting them. The roundtable was hosted by
Sen. Tammy Baldwin.
Following the introduction of what President Donald Trump has described as reciprocal tariffs, Lakefront Brewery has seen a decrease in production of about 4%. A large amount of the company’s gluten-free beer was being exported to Canada, but those imports have halted.
Lakefront also imports several of the ingredients that it uses to make beer. That includes malt from Belgium, which now has a tariff of 10%, and high-end brewing equipment from Germany.
How tariffs will impact Lakefront Brewery’s substantial restaurant operation remains to be seen.
“We don’t yet fully understand the increase in food costs we might have,” Klisch said.
Andy Gehl, co-founder and president at Milwaukee-based
Third Space Brewing, said uncertainty is also a big challenge within his operation.
Third Space hasn’t seen a direct price increase caused by tariffs yet, but Gehl said he is bracing himself for eventual increases.
“It’s incredibly challenging to run a small business,” he said. “Our margins are incredibly tight. We want to hire and purchase equipment and grow our business, but it’s hard for us to invest that cash in those things.”
Handling increasing costs at Third Space isn’t as simple as raising prices for consumers, Gehl added.
Third Space’s beer is shipped via a three-tiered system involving a distributor, retailer and consumer. It would take at least six months before the company saw any return on increasing costs.
Ryan Bandy, chief business officer at
Indeed Brewing, said he recently received a 65% increase for a purchase order related to new tap handles. The brewery is also in the middle of a project that involves upgrading new packaging equipment.
“For two of our parts, wait times just doubled and prices are up 30%,” said Bandy. “We already budgeted for this project and we’re halfway through. We’re wondering if we can finish it.”
It’s difficult to make any business plans now due to the constant “chaos,” Bandy explained. While brewery owners are crafty, he said they need more than a 90-day window of clarity to make decisions.
Other industries
Following a severe drought that took place two years ago, many of Wisconsin’s farms are “just on the edge of viability,” said
James Syburg, owner of
White Oak Farm in Oconomowoc.
Trump’s tariffs have made it difficult to decide where, and from whom, the company sources materials from.
“Farming is so dependent on very critical timing,” Syburg explained. “You can pass that window purchasing the seed, which means you pass the window to plant.”
Ugo Nwagbaraocha, president of Milwaukee-based
Diamond Discs International, said he is also receiving cost increase letters from both American and international manufacturers.
Diamond Discs International is a supplier of construction tools, specializing in diamond-edged cutting blades, core bits and small power tool items.
“It’s amazing to see the level of concern (suppliers) have with what’s going on,” he said. “We all have relationships and contracts. How do we approach our contract with these types of absurd increases down the line?”
Natasha Broxton, president of Milwaukee-based
Select Auto Parts & Sales, provides repair shops with affordable auto parts.
She said Trump's tariffs ripple down to small business owners who rely on affordable tools and software. The tariffs raise costs and make it harder for small businesses to grow – and harder to serve families who are already strapped for cash. Broxton has seen sales decrease by 10% over the past month.
"People have to decide if they should repair their vehicle now or wait because they just don't know (how things will pan out)," she said.
At Milwaukee-based fusion restaurant
Amilinda, chef and owner
Gregory León has seen sales drop 20% over the past month. The company imports most of its food from Portugal and Spain, which means Amilinda was already operating on a “very thin margin.”
“We can pass some cost on to our customers, but the problem is the more we raise prices, the less people we’re going to see,” said León.
Rafael Guerrero, president and CEO of
Oak Creek Wood Products, is no stranger to dealing with supply chain back-ups and price increases. Guerrero said he believes President Trump’s tariffs make it even more difficult to explain to homeowners the importance of investing in quality equipment. People can no longer afford his services.
“I have to explain to the homeowner, who already reports two jobs, why they shouldn't choose the $5 product and why they should choose the $50 product -- and these are both made in China,” said Guerrero. “This isn’t just a tariff. It’s a tax.”
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