Trump tariffs on steel, aluminum; impact on WI businesses
Fyxation Bicycle and Third Space Brewing
MILWAUKEE - President Donald Trump imposed new 25% tariffs on all steel and aluminum imports into the United States, and this latest round of tariffs could impact Wisconsin businesses.
Third Space Brewing
What they're saying:
Inside Third Space Brewing in Milwaukee, machines move like clockwork, filling cans before they’re sealed and stacked for shipment.
"We’ve been putting beers in cans since day one. We’ve never bottled," said Third Space Brewing Owner Kevin Wright.
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Trump tariffs on Mexico, Canada paused; what it means for Wisconsin
Despite the pause, people in Wisconsin are keeping a close eye on the ongoing tariff discussions, and that includes farmers and grocery store shoppers.
It’s those cans carrying beer on Wright’s mind today.
Third Space Brewing
"Cans of aluminum are our number one raw material cost every single year," Wright added.
President Trump plans to announce 25% tariffs on all aluminum and steel imports into the U.S. early this week.
That means it could soon cost Wright more to buy all these beer cans.
"It’s worrisome, it’s hard when you don’t know where things are going," he added.
Third Space Brewing
Aluminum is big for Third Space Brewing. With so much in flux, the owner isn’t sure how the proposed tariffs would impact buyers.
"We’re still trying to figure out how they’re going to impact the specific suppliers. Every supplier is different depending on where they’re sourcing their aluminum from," said Wright.
The newest tariffs echo the 25% steel tariffs and 10% aluminum tariffs that his first administration imposed in 2018.
Fyxation Bicycle
What they're saying:
This latest move follows the president’s decision to impose 10% tariffs on all Chinese goods.
"We have to watch it extremely closely," said Nick Ginster, who owns Fyxation Bicycle Company in Milwaukee.
The majority of their products come from China.
Fyxation Bicycle
"From China, bicycles. It is 100% right now. We do pedals and some other accessories that are imported from Taiwan. As a percentage. I would say 90% of our product, Ginster added.
The gears are in motion on how to adapt to this high-tariff environment.
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"We look at the cost for bringing it in. What we may have to do is increase our prices, because there is only so much you can absorb as a manufacturer," said Ginster.
Fyxation Bicycle
Wright is also trying to plan during this uncertain time.
"You put together plans, your business plan for the year but not knowing our biggest cost inputs is concerning," said Wright.
They are two local businesses bracing for the possible impact of a battle over tariffs happening around the globe.
The Source: FOX6 spoke to the two business owners regarding the proposed tariffs.