much. >> Appreciate it.
>> Banner headlines of 25% tariffs on Mexico and Canada
from President Trump one day. Then an about face. And they're
on pause for 30 days. And across the board additional 10% U.S.
Tariff on China remains in plac. Unsettled times and fast moving.
What's the reaction in the business community in Wisconsin
for that, we turn to Kurt Bauer, president and CEO of Wisconsin
Manufacturers and Commerce. And >> My pleasure.
>> So last weekend, when you heard the news of the 25% tariff
on Canada and Mexico, what was your reaction?
>> Not a surprise. He campaigned on this. We knew something was
coming. We weren't sure exactly how broad it was going to be. We
thought it was a negotiating tactic, particularly with
Canada. We thought that there'd be something more with Mexico.
We obviously thought something was going to happen with China,
but it was a little broader than we thought.
>> How relieved were you then when it was kind of pulled back?
>> I think the pause is good. I'm concerned the retaliatory
tariffs would be rough on Wisconsin. We are a
manufacturing state. We are a agricultural state. We make
things, we process things, we grow things, and we export them
around the world. Canada is our number one trading partner. We
have a positive trade with them right now. The second largest is
Mexico and then China. So all three are on the chopping block.
They account for about 50% of Wisconsin exports. So this could
have a very significant impact on the state of Wisconsin and
our manufacturing and agricultural industries.
>> So it's apparently a 30 day pause. Do you think it will be
reenacted? of talking across the border.
I've talked with my counterparts in Quebec, Ontario and Alberta.
We have a very strong relationships among the trade
associations across the border. We're doing everything we can to
try and work something out as best we can. Ultimately, this is
up to the president. He does have the authority to do this,
and we're hoping that we're able to work out some sort of deal.
And it looks like, you know, you got Mexico and Canada, made some
accommodations. We're seeing that from other countries as
well. So hopefully this will work out and we won't have
tariffs and we won't have a trade war.
>> Yeah. If business moves uncertainty though. What's this
climate like. >> Well that's funny you should
say that because business is inherently uncertain. And this
government shouldn't make it worse. This certainly does. We
saw during Covid 19 that businesses were incredibly
resilient. They were adaptable. They'll have to be again, if
this goes into place. The concern we have is supply chain
and energy. We get a lot of our energy from Canada, particularly
Alberta. We don't want those flows cut off that will have a
major impact on the cost of energy in the state of
Wisconsin. Supply chains are difficult as well. You can't
create a supply chain, particularly on precise products
and raw materials. So, you know, there are we have skin in the
game, to be sure. >> What about the additional 10%
tariff on China? >> Well, we've seen a lot of our
members moving away from China for a variety of different
reasons. China has not been a good actor on trade. They have
manipulated their currency. They have stolen IP, they've forced
tech transfers in exchange for market access. They've
subsidized their industries. They have dumped into the United
States to put American competitors out of business. So
86% of my members support tariffs on China because they
don't believe that they've been a fair player in trade. Look,
we're a manufacturing state, as I said earlier, we're an
agricultural state. We want to sell to the world, but we want
it to be on a fair and equal basis.
to Wisconsin if the Canada and Mexico tariffs or a trade war
does happen? >> It depends on how long it
lasts. It depends on specifically what. But it would
certainly have an impact and we'd see it right away. It
depends on the industry. But most businesses, most sectors
would see some effect right away. And of course that would
trickle down to consumers as well.
what should consumers brace for? >> Well, let's hope that we
don't have to brace for anything. But it's hard to know.
I think gas prices would probably go up. You'd see impact
on products and maybe some agricultural products that we
bring up from Mexico. I was thinking of the Super Bowl. If
you want your guacamole, avocados largely come from
Mexico. All of that could be higher prices.
>> Briefly, you said you were in Washington this week. Have you
spoken with the Trump administration about this and
>> We had a delegation at the white House this week. We did
talk about it. I was not there. I was at the Pentagon having a
different conversation, not Hill talking to the delegation.
They're concerned about it. They certainly recognize that
Wisconsin is a major manufacturing and agricultural
state. They know the stakes. state. They know the stakes.