— Wisconsin manufacturing groups are raising concerns about tariff impacts on supply chains and the cost of energy, while soybean farmers in the state are looking for a “quick resolution” to avoid long-term damage to their trade relationships.
President Donald Trump has imposed 25% tariffs on imports from Mexico and Canada — though tariffs on Canadian energy are limited to 10% — and increased existing tariffs on Chinese goods to 20%. These actions against the United States’ largest trading partners immediately prompted threats of retaliatory tariffs.
Buckley Brinkman, executive director and CEO of the Wisconsin Center for Manufacturing & Productivity, emphasized the uncertainty these tariffs create for manufacturers in the state.
“Manufacturers thrive with certainty and being able to deal with shifts in market, not necessarily the shifts that are caused by external factors,” he said in an interview yesterday, adding “we just figured out our supply chains from the last disruption, and now we’re going to have to figure out how we can make the adjustments that are necessary to deal with these tariffs.”
He noted this period of adjustment will be “difficult” but also said “manufacturers are a resilient bunch, and we’ll find a way to adapt and thrive.”
In a statement yesterday, Wisconsin Manufacturers & Commerce President and CEO Kurt Bauer said the tariffs on imports from Canada and Mexico will hit companies “differently depending on what the company does and what sector of the economy” in which they operate.
He said it will take time to determine the “full effect” of the tariffs on Wisconsin and the U.S. economy, but said WMC is most concerned about the impact on supply chain and energy costs.
“For example, the supply chain will be stressed for some companies, similar to what we saw during COVID-19. And Wisconsin gets much of our oil and gas from Canada, specifically Alberta,” Bauer said. “A 10 percent tariff on imports will increase the cost, which will affect the entire economy in some way, including manufacturing, agriculture, shipping, etc.”
Buckley said any short-term impact of efforts to find new suppliers or “reshoring” production domestically will be “relatively modest,” while manufacturers will likely be passing on price increases to consumers.
“The average price of a car could go up $3,000 a vehicle,” he said. “The price of gas in the Upper Midwest, where we get that from Canada, could go up 75 cents a gallon. And so, there’s going to be some real pressures here that we’re going to have to adapt to and adjust.”
Canada, Mexico and China have each responded with plans for retaliatory tariffs, with China moving to enact tariffs of up to 15% on products imported from the U.S., including agricultural goods such as wheat, corn and soybeans.
Tanner Johnson, a board member for the Wisconsin Soybean Association and soybean farmer in Prairie Farm, represents Wisconsin on the board of the American Soybean Association. In an interview yesterday, he noted soybeans are the No. 1 U.S. ag export to China and will face a 10% tariff.
“And of course, we’re the tip of the spear when it comes to retaliatory tariffs, so we’re obviously not a fan of it,” he said. “I’m not an alarmist. I don’t think the sky is falling. But it certainly has the potential to in ‘soyland.’ So I think we’re monitoring the situation very closely.”
He noted soybean farmers helped develop export markets in China over decades by building relationships with buyers, and “we don’t want to see our hard work thrown away over a trade spat.” He said it’s crucial to maintain the positive relationships that enable U.S. soybean exports to flourish, as Chinese markets buy one in every three rows of soybeans grown domestically.
Johnson says he’s “cautiously optimistic it will be short-term pain for long-term gain,” but notes the tariffs will cause some discomfort in Wisconsin and nationally for soybean farmers.
“I can’t predict that the strategy this administration is using is going to be detrimental, but it’s certainly lacking clarity at the moment,” he said. “Without clarity, we obviously have reason to panic, and to be concerned about any downstream effects … we’re obviously looking for quick resolution and urging this administration to negotiate a long-term deal that’s positive to this country and soybean farmers.”
Johnson is currently attending the Commodity Classic in Denver, the largest indoor agricultural trade show in the country with more than 11,000 attendees.
“To say that it’s the number one topic that’s being discussed is an understatement,” he said.
Meanwhile, a spokesperson for the Wisconsin Farm Bureau Federation says the group is hopeful Trump can “limit trade disruptions” and ensure farmers aren’t caught in the crosshairs of tariff battles. WFBF Director of National Affairs Tyler Wenzlaff notes farmers in Wisconsin have already made planting decisions for the 2025 season and commitments based on “expected market conditions” and availability of inputs.
“Uncertainty in trade policy and potential supply chain disruptions could have significant financial consequences, making it even more critical that trade agreements support stability and access to essential agricultural inputs,” Wenzlaff said in a statement.
— Gov. Tony Evers at a WisPolitics luncheon said tariffs on Canada, Mexico and China will have a negative impact on Wisconsin and possibly reduce the state’s projected $4.3 billion surplus.
Evers at the Madison event yesterday criticized Congress for not taking action, saying “it’s going to be hell to pay.”
“This is not a good situation. We have good working relationships with Canada, certainly we do with Mexico also, but just knowing that they’re already retaliating against us, this is not good for our democracy,” Evers said.
Evers said “of course” the tariffs will have an impact on the state’s projected surplus. He touted measures in his budget, including $2 billion for tax cuts, which aim to help cut costs.
“Those are steps in the right direction, right? Making sure that over-the-counter things and pharmacies are sales tax-free. But will that make up for what’s going on worldwide? No, it’s not. So … it makes our jobs a lot harder,” he said.
WisGOP Rapid Response Director Anika Rickard in a statement to WisPolitics said “President Trump has a simple request for Mexico and Canada: help secure the borders and stop the flow of fentanyl.”
“Tony Evers should be working with the Administration to protect our communities instead of trying to score political points,” Rickard said.
See the luncheon video at WisconsinEye.
— Majority Leader Devin LeMahieu told WisPolitics he plans to put a major transmission line bill on the Senate floor “as soon as possible,” including possibly later this month.
Still, after testifying before a joint committee on SB 28 and AB 25, dubbed “right of first refusal,” the Oostburg Republican said in a short interview yesterday he was still trying to get a handle on how many of his 18 members back the bill.
LeMahieu told WisPolitics in December he would likely need Dem voters to pass the bill with an 18-15 majority. He said yesterday that likely remained true.
Assembly and Senate committees yesterday had a joint hearing on the legislation, which would give existing utilities the first shot at building new transmission lines. The bill — the most lobbied piece of legislation in the 2023-24 session — is driven by coming work under the direction of the Midcontinent Independent System Operator.
The electric grid operator oversees work in a 14-state region and has approved $21.8 billion in projects over the next decade. The additional batch of work includes $1.8 billion in Wisconsin, with bids due in July and August.
The debate over the legislation has largely remained the same over the last several years. Those pushing the bill argue passing “ROFR” would allow transmission companies to spread operational costs of the coming projects across the MISO region. Backers argue that would save Wisconsin ratepayers $1 billion in the coming decades.
See more at WisPolitics.
— Dem lawmakers have proposed legislation that would require lawmakers to approve a plan to cut carbon emissions in half by 2030.
Along with a 52% reduction in five years compared to 2005, the bill calls for a viable plan to reduce emissions to zero by 2050.
The bill is silent on how the state would accomplish that goal, leaving it to lawmakers to lay out a plan of their own.
Backers argued at a news conference there is a new need for states to take the lead on fighting climate change with new uncertainty at the federal level under the Trump administration.
Rep. Supreme Moore Omokunde, D-Milwaukee and a co-sponsor, argued there are many paths to accomplish the goal and that would be up to lawmakers to determine.
“We must all decide what we will do on behalf of the planet that we love and live on,” he said.
The Evers administration in 2022 published a clean energy plan as part of the governor’s goal to reduce greenhouse gas emissions to 52% of 2005 levels by 2030 and 100% by 2050.
— WARF and California venture capital firm Nexus NeuroTech Ventures are launching a new challenge grant aimed at advancing innovative neurotechnologies on the UW-Madison campus.
“We want to recognize and support UW-Madison researchers who are developing groundbreaking diagnostic and treatment methods for neurological conditions,” Wisconsin Alumni Research Foundation CEO Erik Iverson said in a statement. “Through our collaboration with Nexus NeuroTech Ventures, we aim to advance innovative solutions to these critical health challenges.”
The WARF Accelerator Neurotechnology Challenge Grant will consider projects, including those in the early stages of development, that advance new technologies for diagnosing and treating brain disorders such as Parkinson’s disease or bipolar disorder.
Cross-cutting clinical areas including seizures, cognitive dysfunction and mood disorders will also be considered, according to the announcement.
To qualify, project teams must include a principal investigator at UW-Madison or the university-affiliated Morgridge Institute for Research in Madison. Concepts must be new to WARF and demonstrate technical readiness and commercial potential.
The WARF Accelerator will award up to five grants from a $100,000 pool.
Applications can be done here and are due by April 1.
See more at Madison Startups.
For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.
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— Gov. Tony Evers announced he’s appointed Gary Besaw to the Department of Agriculture, Trade and Consumer Protection Board.
Besaw is the director of the Menominee Tribal Department of Agriculture and Food Systems and director of the Menominee Tribal Food Distribution Program.
His appointment took effect Feb. 24, and he will serve as a consumer representative on the board with a term that expires May 1, 2029.
He replaces Paul Bauer, the CEO of Ellsworth Cooperative Creamery in Ellsworth, who submitted his resignation Nov. 27.
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Wisconsin Center for Manufacturing & Productivity: Releases 2024-2025 Wisconsin Manufacturing Report
