Senator Seeks Your Input on Effects of Tariffs

Last month, U.S. Sen. Ron Johnson (R-Wis.), chairman of the Homeland Security and Governmental Affairs Committee, held a roundtable discussion on trade and tariffs. Fifteen Wisconsin businesses attended from sectors such as farming, food processing, and manufacturing.

A sad fact emerged during discussion: The beneficiaries of current trade battles are the global competitors of Wisconsin businesses, including competitors in China, Johnson said.

Johnson, who regularly discusses the tariffs and the backlog of requests for exemptions with the president and U.S. Department of Commerce, recently shared with our Association a copy of a letter he wrote to President Trump. Among excerpts: 

“I truly hope you and your trade negotiators will take a few minutes to read these brief descriptions of how the trade war and tariffs are negatively affecting their efforts to maintain markets, prevent layoffs, and in some cases, survive.

 “…these businesses report price increases ranging between 30-40 percent on the steel and aluminum they use. Because their global competitors are not experiencing these cost increases, they are losing both export and domestic orders and market share. Some have either cancelled or put on hold planned capital expenditures. 

 “Most of these businesses have always tried (and generally succeeded) to source a majority of their steel and aluminum from domestic suppliers. However, some of their material requirements simply are not available domestically, and the prospects of sourcing them domestically any time soon (if ever) are remote. 

 “There is already permanent damage being done to U.S. and Wisconsin businesses because of the trade war. The longer the negotiations last, the more irreparable harm will be done. 

 “In addition to the obvious cost advantage, those global competitors are also raising prices to increase profits. This will provide those competitors additional funds for capital investment to expand capacity and capabilities, making them even more competitive.

 “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. But the best way to obtain China’s compliance with world trading rules is by presenting a united front with our allies demanding full compliance. 

 “I urge you and your trade representatives to understand the plight of businesses struggling during this period of extreme uncertainty, and do everything in your power to return certainty and stability to global markets.”

Johnson’s staff has requested that our Association help him reach beyond Wisconsin. The Association has agreed to compile information and make it available to Johnson, other lawmakers, and the administration. 

We encourage our U.S. members and suppliers to submit letters on company letterhead to Vernon Schmidt at Vernon@FarmEquip.org. If you prefer to remain anonymous, we will accommodate that. You also may submit the information online at FarmEquip.org/Tariff-Survey.

If you wish to be identified, please include your company name and location in your letter. Everyone should describe the impact that tariffs (232 and/or 301) have had on their company, ideally in 300 words or fewer. You are also asked but not required to include the number of employees at your operation and annual sales.

To the extent possible, please include hard data in your description, such as the estimated number of jobs threatened by the tariffs, the percentage cost increase of steel and aluminum (experienced or expected); the percentage of exports; and unintended consequences like shifting production abroad in response to the tariffs, or business expansion or investment that has been placed on hold as a result of tariffs.