TUE AM News: WMC survey finds support for tariffs on China, mixed opinions for tariffs on Canada, Mexico; Talking Trade with Ben Miller, Dairy Farmers of Wisconsin

January 28, 2025

— A recent WMC survey finds state business leaders have mixed views on imposing tariffs on Canada and Mexico, while retaliatory tariffs on China are more popular.

Wisconsin Manufacturers & Commerce yesterday released more results from the group’s winter survey, which gathered results from 153 employers in the state by email and traditional mail.

When asked if they back higher tariffs on imports from countries like China “as a response to unfair trade practices like dumping and intellectual property theft,” 63% said they strongly support it and 23% somewhat support it. Nine percent oppose it somewhat and just 5% strongly oppose the move.

But in a separate question about imposing a 25% tariff on imports from Canada and Mexico, strong support got 8%, somewhat support got 36%, somewhat oppose got 29% and strongly oppose got 27%.

Still, 73% of respondents said they support President Donald Trump’s plan to raise tariffs on Canada and Mexico as a negotiating tactic to help slow illegal immigration into the United States, while 27% were opposed.

“Wisconsin is a manufacturing and agricultural state,” WMC President and CEO Kurt Bauer said in a statement on the results. “We make, grow and process things and we want to sell them around the world. But business leaders are saying that we need our trading partners to play by the rules.”

Half of respondents said increased tariffs would have a negative impact on their business, while 26% said they would have a positive impact and 24% said they wouldn’t have an effect.

The survey also included questions on other federal policy topics, ranging from immigration to tax cuts and research and development expense deductions.

WMC found strong support for several policy actions aimed at driving legal immigration related to employment.

Ninety-six percent of respondents said they support “significantly increasing” annual quotas for employment-based immigration visas to allow more skilled workers to legally enter the country. The question referenced the H-1B program, which allows foreign workers that meet certain professional benchmarks to temporarily work in the United States in specialty occupations.

Similarly, 99% of respondents support creating new visa options for “high-demand” workers to boost the pool of skilled legal immigrants in the workforce.

See the report and release.

— In the latest episode of “Talking Trade,” Ben Miller of Dairy Farmers of Wisconsin touts the opportunity for dairy exports to reach new markets.

Miller, senior vice president of industry relations for the dairy business promotion group, shares insights on Wisconsin’s specialty cheese and other dairy products being shipped to markets around the world. While Canada and Mexico are the top export destinations, Miller says the group sees “a lot of growth” and opportunity in places like South Korea and China and elsewhere in Asia.

“We at [DFW] are partnering with a variety of organizations to get in front of these buyers, and also bring these buyers to Wisconsin so they can experience what you and I take for granted,” he said. “That is how we take care of our farms, how we take care of our rural communities.”

The conversation also touches on the latest developments with the next federal Farm Bill, the organization’s major policy priorities for that legislation and related funding.

“It will be interesting to see how Congress, you know, balances all of these priorities, but it is really important for our rural economy,” Miller said.

He also weighs in on the potential impacts for tariffs being imposed under the new presidential administration and possible responses by other countries. Miller stresses the importance of keeping relationships with partners outside of the United States and raising the visibility of Wisconsin dairy on the world stage.

“We’re going to do that, regardless of what’s happening around us in the political landscape,” he said. “And we’ll do it this year and next year, and we’ll continue to build on that momentum.”

Talking Trade is hosted by E.M Wasylik Associates Managing Director Ken Wasylik and M.E. Dey & Co. President and Managing Director Sandi Siegel.

Watch the full episode here.

“Talking Trade” is now available in audio form on Apple Podcasts and Google Podcasts. Subscribe and find more episodes here.

— Four GOP lawmakers are circulating legislation that would exempt cash tips from the Wisconsin income tax.

Under the bill, tips included on a credit card payment would still be subject to the state income tax. If passed, Wisconsin would be the first state to create an income tax exception for cash tips paid to employees, according to the co-sponsors.

President Donald Trump campaigned last year on eliminating federal taxes on tips, though details haven’t been released, including whether it would extend to payroll taxes that fund Social Security and Medicaid.

The co-sponsors of the Wisconsin proposal didn’t have a fiscal estimate yet for the bill, which mirrors a 2019 proposal that had bipartisan co-sponsors. The bill didn’t receive a public hearing or a vote in either chamber.

According to the fiscal note on the 2019 bill, Wisconsinites reported $583 million in tips in 2016. Exempting all tipped income that year would’ve reduced state revenues by $23.3 million. But because the Department of Revenue doesn’t collect information on tips paid in cash vs. other methods, the agency couldn’t project what the exemption would’ve saved workers.

DOR noted a study that about 20% of all U.S. consumer payments use cash. Applying that method to tipped income suggested the proposal would save employees about $4.7 million annually.

— The law firm Michael Best is urging employers to prepare for more immigration enforcement activities, including worksite investigations and arrests.

The Milwaukee-based firm yesterday issued a “client alert” referencing Trump’s multiple executive actions on immigration enforcement, calling on employers “in all industries” to prepare for related impacts. It recommends creating a plan for worksite visits by Immigrations and Customs Enforcement and other agencies.

The alert notes ICE agents don’t always have a right to enter a private business, take documents or detain and arrest workers, though they can access public spaces of a business at will. These include restaurants’ dining areas, business lobbies or parking lots.

“Immigration agents can enter a private area with a judicial warrant,” authors wrote. “The employees responsible for the company’s response plan should know how to identify a judicial warrant and distinguish it from an administrative warrant. The scope of each warrant must also be carefully reviewed.”

The firm says public-facing employees, such as someone stationed at a front desk, should be prepared to identify official visitors and understand how to coordinate the company’s response. Businesses’ designated contact for such visits should be trained on the company’s and employees’ relevant rights, the firm says.

See the full message here.

— State and local officials say Microsoft’s acquisition of 240 acres of land in the Kenosha area will drive job creation and economic development.

The city yesterday announced the sale of the parcel, located northwest of Interstate 94 and Highway 142, to the Washington-based tech company. The release notes city officials passed ordinances in December related to the property, “paving the way for potential data center development.”

The purchase comes after Microsoft last year announced plans for a $3.3 billion data center project in Mount Pleasant, about 20 minutes north of Kenosha.

Officials comments yesterday tied the latest land purchase to the company’s ongoing investment in Wisconsin, though the announcement included few details on how the land will be used and how much the company is paying for it.

The company reportedly plans a large data center for the site. But when asked for more information, a spokesperson for the Metropolitan Milwaukee Association of Commerce said Microsoft “has not finalized plans for the site nor do they have a timeline at this point.”

Still, Kenosha Mayor David Bogdala says the “groundbreaking investment” strengthens the city’s position as an innovation and economic growth hub.

“Opportunities created by development of this land — from job creation to strengthening our local economy — will resonate for generations to come,” he said in a statement.

Kenosha County Exec. Samantha Kerkman also touts the “major economic impact” from Microsoft’s investment. And Nicole Ryf, president of the Kenosha Area Business Alliance, says the company’s move “signals that the Chicago-Milwaukee corridor is gaining international attention” for its strategic location, workforce, infrastructure and “pro-business climate.”

Meanwhile, Gov. Tony Evers says he’s proud that southeastern Wisconsin “has been a key focus for our economic support, development and growth efforts.”

See the release and see more in Top Stories below.

— StartingBlock’s Madworks Accelerator is now accepting applications for its next cohort until Feb. 7.

The program takes place March 12 through June 4 at StartingBlock Madison, with an additional four weeks of follow-up programming and mentor sessions in the fall.

Each participating company receives a $5,000 grant and a one-year membership to StartingBlock. Participants must be able to commit at least 20 hours per week toward working on their venture, including active attendance and participation in Madworks Accelerator classes and mentor sessions.

Applications can be found online. See more at Madison Startups.

Microsoft acquires 240 acres in Kenosha for major data center project

Wisconsin businesses back some Trump tariffs — but not these

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