Trade Tariffs – What’s Being Done?

Roxanne Baumann
WMEP Director of Global EngagementWe are all getting lots of questions from our customers on tariffs. I’ve been staying very close to this, both for understanding and to provide clear answers to our customers and ExporTech graduates. On Monday, July 16th, fifteen Wisconsin manufacturer’s and businesses provided input to US Senator Ron Johnson at a Milwaukee roundtable listening session that I attended. As background, Wisconsin has two key legislators providing feedback to the Administration. One is US Senator Ron Johnson who Chairs the Senate Committee on Homeland Security and Government Affairs. The Government Affairs committee has direct access to the Administration on trade deals. The second is Waukesha County Executive and M7 Co-Chair Paul Farrow who was just named to US Trade Representative Robert Lighthizer’s committee on trade deals under the International Trade Administration. The bottom line for both of these legislators has been to “do no economic harm” with tariffs or revisions. I’ve offered support and am in contact with both. I feel confident having Wisconsin ties to the Administration in positions of influence will create positive outcomes for Wisconsin businesses.We submitted names of 10 ExporTech CEO graduates, who provided input to Senator Johnson, in addition to the 15 company leaders chosen for Monday’s roundtable. Senator Johnson’s report and letter sent directly to President Trump is attached. The call to action is clear:

1) A sense of urgency to reach conclusion to restore certainty for business. “The longer the negotiations last, the more irreparable harm will be done.”

2) Join with our allies to bring China into full compliance with world trading rules. “China is the primary abuser of the global trading system. China’s theft of industrial and military secrets has cost America and our allies hundreds of billions of dollars. The best way to obtain China’s compliance with world trade rules is by presenting a unified front with our allies, demanding full compliance.”

My key takeaways from this session are:

  •  CERTAINTY – the economy is moving, regulations have been reduced, and this positive momentum could halt if this trading uncertainty continues. This affects all sides of global trade including procurement, supply chains, and exports.
  • SENSE OF URGENCY – The tariff war appears to be a series of preliminary negotiation “volleys”. The faster we get past these moves, the more we mitigate risks. Business needs clarity, at a minimum 5 years and beyond.
  • DATA – As you might expect, Senator Johnson has been strongly requesting a myriad of data to personally drill down on all aspects of this issue. Some, but not all have been forthcoming.
  • SECTORS – All Wisconsin sectors are impacted by tariffs and resultant uncertainty including farming, food processing small, medium and large manufacturing.

SEN RON JOHNSON TARIFF LETTER