Oconto business owners react to tariffs with ‘business as usual’ attitude

OCONTO – While both U.S. Senators from Wisconsin have criticized tariffs and expressed concerns about their impact on Wisconsinites, some business owners in Oconto County are less fazed by the Trump administration’s actions in President Donald Trump’s first 100 days in office.

Sen. Tammy Baldwin, a sponsor of 2023 legislation to stop Chinese counterfeit merchandise from entering the U.S., has criticized the tariffs. “President Trump came into office promising to lower costs for Wisconsinites. Instead, his trade war is landing families and businesses alike with higher costs that make it harder to make ends meet,” Baldwin said in an April 18 release.

When Trump announced in April his crackdown on counterfeit products made in China by preventing them from entering the U.S., Baldwin said she agreed with him. Baldwin’s anti-counterfeit legislation, which she introduced with Republican Sen. Bill Cassidy of Louisiana, aimed to close a loophole allowing China to export counterfeit products worth less than $800 by taking advantage of an expedited customs process.

“Bad actors in China are taking advantage of a trade loophole to traffic counterfeit goods that undermine our businesses and illegal substances like fentanyl that are crushing our communities. We must do more to stop it,” Sen. Baldwin said in 2023.

Following Trump’s announcement this year of stepped up imports enforcement, Baldwin said, “I am glad the President is following my lead to close this loophole that undercuts our Wisconsin manufacturers,” she said.

In Oconto County, small business owners contacted for this story were optimistic about the economy. “We’ve weathered a lot of ups and downs,” said Danna Magnin, co-owner of Our Own Construction Corp. in Lena.

Magnin said she has worked in the industrial and commercial building business for 50 years. “At the moment, I’m maybe a little concerned about what prices are going to do in the short term. I feel the economy is still pretty strong. I feel business is going to be pretty good,” Magnin said.

It’s business as usual at 41 Auto Stop on Business 41 in Oconto, where owner Dawn McDonald said she doesn’t look at where supply parts are made when deciding what to purchase. She orders from O’Reilly Auto Parts and NAPA so she can have them quickly.

“A lot is made in China because it’s after-market parts,” she said. “There’s not anything we can do differently. We only have so many suppliers we can get parts from and we have warranties.”

McDonald said she hasn’t changed her parts matrices in preparation for tariffs. She recalls the inflation during Covid, but said higher prices haven’t hit the current market.

“I know they consider this business kind of recession-proof because people need their vehicles either way,” she said.

If anything, people are buying larger vehicles, not smaller cars, she said. “From five years ago, people are more likely to drive larger cars than they were in the past.”

When asked if she thought Trump might back down and cancel the tariffs, McDonald said, “I’m sure they’re going to go into effect.”

It’s not all about the tariffs as prices were going up before, “Prices have gone up a lot and they’ve been going up, prior to tariffs,” she said.

The New York Times reported March 31 10% tariffs on foreign-made vehicles and car parts were scheduled to take effect April 3 and apply to imported parts. On April 4, China said it would impose 34% tariffs on U.S. goods as of May 10. On April 8, Trump modified his Harmonized Tariff Schedule of the United States by upping some tariffs to 84% and increasing some ad valorem duties at the border to 90%.

On April 9, Trump postponed many tariffs for 90 days to June 10, but upped some tariffs on China, changing the 84% tariff to 125% and increasing to 120% from 90% an ad valorem rate of duty on imports worth less than $800, according to a White House fact sheet. A per-postal-item duty on goods is set to take effect May 2, pushing the fee to $100.

On April 28, U.S. Rep. Shri Thandar, a Democrat from Michigan, introduced seven articles of impeachment against Trump, accusing him of overreach and abuse of trade powers, according to media reports.

On its website, the White House said many family-owned businesses are in support of tariffs and regard them as a way to rebalance the domestic marketplace after unfair trade practices have impacted U.S. manufacturing. A post on whitehouse.gov quotes a Clintonville, Wisconsin-based steel forging manufacturer. Walker Forge’s President Will Walker said, “This is the first time in generations that we have a President who puts American manufacturing first. That’s what these tariffs do, put America first.”

While Oconto-area business owners were less direct in their support of tariffs, several said the Covid period of inflation didn’t cripple their businesses.

Sheeting prices for new construction soared to $65 during Covid compared to about $20 now, recalled Nate Gilligan, co-owner of Success Construction in Oconto.

Prices rose so fast during Covid, “they literally didn’t put prices on the racks at Menard’s. It could change from the time you walked to the back of the store from the front,” he recounted.

His customers were understanding. “There were some customers who didn’t want to follow through with the work just because the prices were so much different,” he said, estimating about 20% backed out. But others stuck with their building projects despite the higher prices.

“It was surprising the number of people who weren’t really fazed by it and ran with it,” he said.

“Prices seem to be stable for the most part. Material-wise, we haven’t had any trouble getting anything yet. Building season is just coming back up,” he said. “We’re booked like crazy.”

By announcing the tariffs, Trump got people talking, Gilligan said. “I think it’s a fair deal right now. At least, it got everyone’s attention to come to the table and negotiate.”

At United True Value in Oconto Falls, co-owner Lisa Olson said, “We’re just going to wait and see.”

At the spring market where the store orders merchandise, “We haven’t seen anything noticeably different,” she said. “Those prices are going to be honored.” When inflation spiked in 2022, Olson said, United True Value increased its prices in response to the higher costs it paid for goods.

Republican Sen. Ron Johnson reportedly spoke harshly about Trump’s tariffs April 16 at a Wisconsin Manufacturers and Commerce (WMC) event. Despite the invitation Peshtigo Times’ owner Multi Media Channels received to the event, a WMC staff member announced it was a private meeting for WMC members and not open to the media. “WMC did not invite the media and if somehow any members of the media are with us this morning, we ask that you leave the webinar at this time. None of the comments made at this webinar are on the record and none of them are for attribution.” A reporter’s email to Johnson’s office with a request for comment after the meeting wasn’t responded to.

In the past, Johnson has been critical of tariffs, according to historical content on his website. His website is silent on the current state of tariffs today.