Manufacturers hurt by tariffs sound off to Sen. Johnson

Ralph Hardt of Manitowoc-based Jagemann Stamping Co. came to the Federal Courthouse in Milwaukee Monday to tell Republican U.S. Sen. Ron Johnson exactly how tariffs are hitting his bottom line.

Hardt, the firm’s president, said a Canadian customer was going to give Jagemann a $3 million project to produce automotive parts but because of an increase in steel prices in the U.S., the job went to a Korean business.

“The longer this goes on, the increased possibility we’ll lose more new projects,” Hardt said.

Johnson convened a group of 15 Wisconsin business leaders from the farming, food processing and manufacturing sectors to discuss President Donald Trump’s trade policies and the nascent trade war.

The Trump administration imposed tariffs on foreign-made aluminum and steel, igniting retaliatory measures by America’s trading partners.

“We’re being hit inbound and outbound on our products,” said Doug Reigle, vice president for supply chain management at Kewaskum-based Regal Ware Inc.

Brad Kremer, a farmer from Pittsville, said he lost $60,000 in the past 30 days because of a drop in soybean prices after China announced tariffs against U.S. soybeans.

Even though Kremer said he supports Trump trying to level the playing field on trade with China, the tariffs are hurting.

“Farmers aren’t going to buy this year,” he said. “Our checkbooks are closed.”

Austin Ramirez, chief executive of Waukesha-based Husco International, an engineering and manufacturing firm, said tariffs are costing “us a fortune ... about $1 million a month in impact.”

“Husco is far from the largest company in Wisconsin, however, last year we were the largest contributor to Wisconsin charities in the state,” he added. Ramirez said tariffs will not only affect business but also communities.

Ramirez said he had around “100 jobs worth of manufacturing in the U.S.” to support exports and those jobs are now at risk.

Cindy Brown, president of Chippewa Valley Bean Co., said her family began farming in the state in 1858, and she said “of all government interactions, this is absolutely the worst. It totally takes us out of the European market.”

Brown said 60% of the firm’s export business goes into the European Union, accounting for $25 million in sales. But now that business is being hurt by tariffs, she said.

Johnson said there are people who are concerned that a trade war will “get out of control.”

“You’ve heard already of the damage being done,” he said.

Johnson said he held the discussion to deliver the stories to Trump and Commerce Secretary Wilbur Ross and trade negotiators “so they understand that there is some real damage being done now. They say there’s going to be short-term pain for long-term gain, fine, but they need to understand some of this damage is going to be permanent.”

Johnson said he was hopeful the Trump administration would conclude trade deals.

Johnson said the businesses provided details of what they’re facing and he added, “Houston, we’ve got a problem.”