Milwaukee business owners say tariffs are hitting home

The Impact of Tariffs on Wisconsin Businesses and Consumers

The implementation of tariffs on imported goods under the Trump administration has created significant challenges for businesses and their customers. During a meeting on August 6, U.S. Senator Tammy Baldwin heard firsthand from business owners in Milwaukee about the growing concerns surrounding these trade policies.

Baldwin’s visit to Diamond Discs International marked the beginning of her statewide tour. This was not her first conversation with local businesses; she had previously met with Milwaukee companies in April when the effects of the tariffs were still looming but not yet in place. At that time, uncertainty about future costs made it difficult for businesses to plan effectively.

On this particular visit, the discussion centered on the real-world impacts of President Donald Trump's trade war, particularly how these policies are affecting Wisconsin consumers. The meeting took place just a day before a new executive order went into effect, which updated tariff rates for more than 60 trading partners. These rates range from 10% for the United Kingdom to as high as 41% and 50% for countries like Syria and Brazil. As a result, U.S. businesses importing goods from these regions face increased costs, forcing them to either absorb the expenses or pass them on to consumers.

Ugo Nwagbaraocha, president of Diamond Discs International, emphasized the need for long-term planning and certainty, which his business currently lacks. He pointed out that small businesses in Milwaukee are increasingly worried about maintaining their spending power if the cost of goods continues to rise unpredictably.

Maurice Wince, owner of Sherman Park Grocery, highlighted the impact on his community. As the only Black-owned and full-service grocery store in the neighborhood, his store provides fresh produce to residents. However, he noted that the rising costs could force customers to buy fewer items. “Moving forward, this means walking out with one bag versus three,” he said.

Tyrone Johnson, president of Brother Infrastructure Group, shared similar concerns. For a fencing project on Interstate 41, he has had to seek financial assistance from banks due to a 35% increase in supply costs. He compared the situation to playing the lottery, where each bid is uncertain and risky. “I don't think any small business can sustain that,” he said.

Robert Montemayor, owner of three Monterrey Market grocery stores, added that even small price changes can significantly affect families. He mentioned that some customers now pay up to $150 for groceries for a family of four, compared to $100 the previous week. “You have anywhere from 40% to 50% of customers that are out there saying that,” he explained.

Senator Baldwin described the current situation as “chaotic” for both Wisconsin consumers and businesses. She criticized the Trump administration's trade strategy as a “scattershot approach.” Despite the challenges, she expressed confidence in the resilience of the people of Wisconsin, stating that they find ways to overcome difficulties.

The Trump administration has defended its trade policies, arguing that they are necessary to address long-standing imbalances with other countries and bring jobs back to the United States. The White House has claimed that President Trump is the first president in modern history to take bold action against the country’s chronic trade deficits.

In recent developments, Trump announced that he is close to reaching a trade deal with China as the Aug. 12 deadline for a tariff agreement approaches. Meanwhile, Baldwin has been advocating for revisions to current trade agreements, stronger enforcement of trade laws, and increased support for workers affected by these policies.

Baldwin’s tour also serves as a platform to highlight her opposition to the Republican-led tax and spending package known as One Big Beautiful Bill and its potential impact on Wisconsinites. She plans to visit several counties this week, including Brown, Door, Lincoln, Sawyer, and Ashland.