Industries come and go, but Wisconsin is still very much a manufacturing state.
Its companies produce everything from machinery to medical devices, from food to forest products, and from chemicals and clothing to computing components. These companies buy materials from a global supply chain, sold more than $27.5 billion in products worldwide last year and accounted for about 690,000 home-state jobs in the process.
To say there has been concern among these manufacturers since President Donald Trump announced sweeping tariffs on 60 nations would be an understatement. It has been more like confusion and consternation, even with the 90-day rollback on the steepest tariffs on all countries except China.
It was a recurring topic at the April 9 “Manufacturing Matters” conference in Brookfield, where about 400 people representing a broad cross-section of Wisconsin manufacturing gathered to discuss best practices, emerging technologies and more. Those who attended the event, produced by the Wisconsin Center for Manufacturing & Productivity, may differ on the pros and cons of tariffs – but they likely all agree on the need for long-term stability.
“Tariffs may be great for protecting a fledgling industry, but they can institutionalize inefficient operators elsewhere and the volatility they create makes it difficult to justify some long-term investments,” said Buckley Brinkman, who leads the WCMP.
Disruptions in supply can leave companies in a bind, Brinkman noted, and it’s not true that all items needed by Wisconsin manufacturers come from Canada or Mexico. “Some of our key supply chains don’t originate anywhere near North America … and we’re just getting the supply chain back in order after COVID,” he said.
During a recent interview on Wisconsin Public Radio, the head of Wisconsin Manufacturers & Commerce – the state’s largest business lobby – said tariffs can be a problem for many businesses but favored by others in some cases.
WMC president and CEO Kurt Bauer noted that a survey of business owners showed “a surprisingly high percentage were in favor of the tariffs” on Chinese-made goods but against such import taxes on items from Canada and Mexico.
Bauer added his association would prefer to see tariffs “come down globally” so that Wisconsin-made products aren’t disadvantaged.
“We make things, we grow things, and we want to sell them around the world,” he said, noting that WMC wants trade to be “free, fair and reciprocal, and it hasn’t always been that way.”
Some have suggested Trump’s tough talk on tariffs has been mainly about that negotiating point: Removing barriers to U.S. goods and products elsewhere. He has also voiced his support for “reshoring” American industry that may have moved overseas or across the border, although such a shift would take time and investment to accomplish.
Those are two reasons why the president not only kept tariffs on Chinese goods during the 90-day pause but increased them to 125%, which has raised concerns about a trade war centered in the world’s two largest economies.
It’s possible there could be an opposite effect when it comes to China. Confronted by unpredictability that apparently will be ongoing, some U.S. companies already doing business in China will opt to continue to do so. In uncertain times, some business leaders may reason, “let’s stick with what we know.”
In addition, it’s no longer exclusively true that American companies do business in China because of cheap labor. Manufacturing expertise, technology and a skilled workforce are also a major part of the equation.
Financial markets also loathe unpredictable times, which is one reason why some of the wild swings of late have occurred on U.S. stock exchanges as well as others abroad.
In Wisconsin, most business owners will eventually figure out their strategies for coping with tariff uncertainty. After all, they live every day with taxes, regulations and sourcing the right talent. It’s a fair bet, however, that almost all would prefer to see the tariff debate solved much sooner than later.
Tom Still is the president of the Wisconsin Technology Council. He can be reached at tstill@wisconsintechnologycouncil.com.
More articles about tariffs:
- Viewpoints: MMAC CEOs doubt Trump tariffs will lead to prosperity
- Wisconsin manufacturers re-examining their pricing methods to mitigate impact from tariffs
- Viewpoints: Trump, Vance on manufacturing: wrong again
- Regal Rexnord expects ‘negligible’ $60 million hit from tariffs
- J.P. Morgan leader discusses how Milwaukee-area investors, business owners can navigate tariff concerns
- Molded Dimensions Group helps manufacturers navigate tariffs through Reshore Success Program
- Generac CEO discusses how tariffs, political uncertainty are impacting the business
- Rockwell Automation implements ‘multi-faceted’ tariff mitigation plan
- What are Wisconsin’s top imports from China, Canada and Mexico?
- Wisconsin businesses back China tariffs, mixed on tariffs for North American neighbors
