Ron Johnson warns Donald Trump there is already 'permanent damage' being done because of trade war

Milwaukee Journal Sentinel

Two days after listening to 15 Wisconsin business leaders detail problems they're having because of tariffs, U.S. Sen. Ron Johnson sent a letter Wednesday to President Donald Trump telling him "permanent damage" is being done to U.S. and Wisconsin businesses because of the trade war.

Johnson urged Trump and his trade representatives to "return certainty and stability in global markets."

Johnson held a meeting Monday in Milwaukee to focus attention on Trump's trade policies and a nascent trade war that is affecting businesses in Wisconsin.

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

In his letter to the president, Johnson said he enclosed brief descriptions from the companies "of how the trade war and tariffs are negatively affecting their efforts to maintain markets, prevent layoffs, and in some cases, survive."

"In summary, these businesses report price increases ranging between 30-40 percent on the steel and aluminum they use," Johnson said. "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. Others are considering moving operations abroad."

Johnson said most of the businesses have tried to source the majority of their steel and aluminum from domestic suppliers.

"Ultimately, the tariffs on imports and increased manufacturing costs will increase prices for American consumers and stifle economic activity," he said.

"In farming and food processing, the retaliatory actions to U.S. tariffs will have a profoundly negative effect," Johnson said. "Global markets that have taken decades to develop are drying up, and the damage could be permanent. Without overseas markets, supply will significantly exceed domestic demand causing prices to plummet and farmers to go bankrupt."

Johnson, a manufacturer, said: "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."

He said the business leaders told him the primary beneficiaries of the trade war are the companies' global competitors, including those in China.

"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 said.

Johnson sent his letter the same day the Marquette University Law School poll showed 24 percent of those surveyed think increased tariffs on aluminum and steel will improve U.S. economy while 55 percent think they will hurt the economy.

The poll found sharp partisan differences on tariffs, with 44 percent of Republicans and 7 percent of Democrats saying they are good for the economy.

Regarding Harley-Davidson's decision to move production overseas, 37 percent say company is doing so because of the tariffs, with 47 percent saying the company would have done so anyway.