News Summary
Wisconsin business leaders discussed the negative effects of tariffs on their operations during a meeting with Senator Tammy Baldwin. Local businesses, including Lakefront Brewery and Energy Masters LLC, reported declines in sales and increased costs linked to tariff uncertainties, particularly those related to China. Despite the challenges, many business leaders remain optimistic about future profitability but call for clearer communication on trade policies. The conversation reflects broader economic concerns within the state and highlights the need for supportive measures for local businesses.
Milwaukee, Wisconsin – Wisconsin business leaders are expressing significant concerns over the ongoing economic challenges linked to tariff uncertainties. During a recent meeting held at Lakefront Brewery, Democratic Senator Tammy Baldwin engaged with local business owners to discuss how the current economic landscape is affecting their operations. A primary focus of the conversation was the impact of tariffs imposed by the Trump administration, particularly those affecting trade with China.
Lakefront Brewery President Russ Klisch reported that his company has experienced a notable decline in sales, specifically citing a 4% reduction in purchases of their New Grist beer from Canada. Klisch highlighted the rising costs faced by his business, stating that letters from equipment suppliers indicated increases in prices for spare parts over the last few months, reflecting the broader issue of price inflation due to tariffs.
Moreover, the owner of Energy Masters LLC, Jim McGuigan, detailed the financial strains on his business caused by tariffs. He pointed out that prices for roofing materials, particularly flashing, have risen due to dependence on Chinese manufacturing. Additionally, he mentioned that roofing nails are exclusively sourced from China, indicating a direct link between tariff policy and local business costs.
Natasha Broxton, president of Select Auto Parts & Sales, Inc., shared her experiences of a challenging sales environment, reporting a 10% decrease in sales and describing her business as being in “limbo” due to unclear tariff regulations. Broxton emphasized how the increased costs stemming from these tariffs are making it difficult for small businesses to expand and thrive.
Senator Baldwin acknowledged the necessity of targeted tariffs in specific situations, such as when addressing foreign subsidies or forced labor in the steel industry. However, she criticized the chaotic approach of the administration towards tariffs, calling for better communication from President Trump regarding trade policies.
A White House spokesperson defended the administration’s tariff strategies, arguing that President Trump has made decisive moves to rectify unfair trade practices with foreign partners. On social media, Trump reiterated the importance of domestic production, particularly emphasizing a strong stance against China.
A survey conducted by Wisconsin Manufacturers and Commerce (WMC) revealed that 36% of business leaders in the state consider the national economy to be their primary concern, with an additional 13% citing global economic conditions. Concerns surrounding healthcare costs and labor availability were also significant among respondents.
Kurt R. Bauer, the WMC president and CEO, noted that uncertainty plays a major role in economic decision-making, influencing factors such as trade and federal budgets. Interestingly, the survey found that 52% of employers are now reporting difficulties in hiring, a decline from 63% six months prior, while Wisconsin’s unemployment rate remains low at 3.3%, compared to the national rate of 4.2%.
In terms of economic sentiment, 68% of surveyed business leaders rated Wisconsin’s economy as “moderate,” with only 20% considering it “strong” and 12% “weak.” Despite the challenges, an optimistic 92% of these leaders believe their businesses will remain profitable in the next six months.
Furthermore, a significant portion of state leaders indicated that more affordable healthcare options and reduced regulations are necessary to support local businesses. The latest WMC outlook survey compiled responses from 208 employers, offering a comprehensive insight into the sentiments of business leaders regarding the economic landscape.
In related news, BizTimes Media recently released the 2024 edition of Wisconsin 275, which profiles 275 influential business leaders from various industries across the state. The selection for this profile was determined by reviewing previous nominees, taking recommendations from past recipients, and consulting with business networks in the region.
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Additional Resources
- Milwaukee Journal Sentinel
- BizTimes: Wisconsin 275
- Spectrum News 1
- BizTimes: Nominations for Notable Leaders
- BizTimes: Leadership Advice
- Wikipedia: Wisconsin
- Google Search: Wisconsin business leaders tariffs
- Google Scholar: Wisconsin business economy
- Encyclopedia Britannica: Wisconsin
- Google News: Wisconsin business news
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MILWAUKEE STAFF WRITER The MILWAUKEE STAFF WRITER represents the experienced team at HEREMilwaukee.com, your go-to source for actionable local news and information in Milwaukee, Milwaukee County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Summerfest, Milwaukee Film Festival, and the Milwaukee Boat Show. Our coverage extends to key organizations like the Metropolitan Milwaukee Association of Commerce and Visit Milwaukee, plus leading businesses in manufacturing and brewing that power the local economy such as Harley-Davidson and MillerCoors. As part of the broader HERE network, we provide comprehensive, credible insights into Wisconsin's dynamic landscape.
