THU AM News: Busy Q2 expected as companies take advantage of tariff reprieve; Port of Green Bay sees slow start to shipping season

May 22, 2025

— The head of Milwaukee-based customs broker M.E. Dey says “it’s going to be a busy Q2” as companies rush their imports and exports during the current tariff reprieve.

Sandi Siegel, the company’s president and CEO, notes the international trade landscape remains fraught with volatility despite the U.S-UK trade deal announced earlier this month and the more recent temporary reduction in tariffs between the United States and China.

“I think what’s difficult is nobody knows,” the WisBusiness “Talking Trade” co-host said in a recent interview. “It’s a 90-day pause, so how do you plan? That’s the challenge … it’s good news, it’s just, there continues to be so much uncertainty. Because it’s all temporary and nobody knows what’s around the corner.”

Similarly, Wisconsin Manufacturers & Commerce President and CEO Kurt Bauer says “the uncertainty is the biggest challenge and obstacle” the group hears from its member businesses. In a separate interview, he said “certainty is preferable” and expressed hope that the tariff issue is resolved as soon as possible.

Bauer referenced an unnamed business in western Wisconsin that gets “critical components” from China for its manufacturing operation.

“Obviously, tariffs make the costs go up, it makes them less competitive in the global market,” he said.

Still, both Siegel and Bauer said some of the recent developments are a step in the right direction, particularly elements of the trade deal with the United Kingdom. Bauer said “it’s not just tariffs” in play, noting countries create other barriers in front of U.S. products entering their markets such as value-added taxes and other regulatory obstacles.

“The UK deal in particular seems to really be advantageous for Wisconsin and U.S. agriculture … that template applied to the EU would be very helpful to us,” he said, adding “the EU is probably the bigger barrier than the individual nations, Germany, France, etcetera. So a deal with the EU would be very helpful, and I hope that’s coming soon.”

While M.E. Dey doesn’t do much business in the UK, Siegel said the deal is “breaking down some of the non-tariff barriers” around food-related products.

“Better access for a lot of agriculture … beef, root vegetables, animal feed, stuff like that,” she said. “Much more access to the UK market, so obviously all that agriculture is great for Wisconsin.”

Many of the Milwaukee broker’s clients are taking advantage of the agreement with China to sharply reduce tariffs for a 90-day period, she noted. Siegel said some customers have had goods on hold in China in the hopes that tariffs would be lowered. Now that they have, “all of a sudden they’re ready to ship and they can’t get it out of there fast enough,” she said.

“So that’s going to drive freight rates up, and you know, a lot of scramble for space,” she said, noting importers had been “overbuying” earlier in the year amid threats over impending tariffs. Now, she says shipping volumes will pick up again while the window is open, made more urgent by the possibility it will slam shut once again.

Meanwhile, Bauer said both the UK and China deals are significant for Wisconsin manufacturing, noting many companies in the state source components and raw materials from China in particular.

“Having those barriers dropped is just important,” he said.

WMC has been tracking potential impacts from tariffs on three main areas: energy, supply chains and access to markets. He said the energy concern has been addressed for now, after a plan to tax energy imports from parts of Canada at 10% was taken off the table, noting “that would have raised prices for everything” in Wisconsin.

But concerns around supply chains remain prominent, given the state economy’s reliance on goods sourced from around the world, he said. And he emphasized the importance of continued market access for Wisconsin exports.

“We’re an agricultural state, we’re a manufacturing state. We make things, we grow things, we process things. We want to be able to sell them around the world,” he said. “Particularly where there is population growth and middle-class wealth growth, and that’s largely Asia.”

While Bauer said he’d like to get “as much certainty and clarity as we possibly can” on costs for importing and exporting products, he added WMC members have been surprisingly supportive of the Trump administration’s stated goal of trade fairness. He also said the group “can absolutely get behind” the goal of driving more U.S. manufacturing.

Bauer added some manufacturers in the state are already connecting with more domestic customers through other producers in their supply chain, as a result of the disruptions overseas.

“So there’s certainly some opportunity that our businesses, our members see, and obviously, I mean we’d like to see as much reshoring as possible,” he said.

Get more trade insights from recent episodes of “Talking Trade” here.

— The shipping season is “off to a slow start” for the Port of Green Bay, with less than half as much cargo during March and April than in the same period last year.

Port officials yesterday released figures for the last two months, showing just under 74,000 tons of cargo moved through the Port of Green Bay during that time. The comparable figure last year was about 204,000, while it was 186,000 in 2023 and 101,000 in 2022.

Port Director Dean Haen notes Green Bay is seeing lower levels of key commodities such as coal, which is down 56% from the same period of 2024. Salt and petroleum products are down 100%, he notes in the release.

“Additional coal was shipped in last season, reducing the need for shipments early this season,” he said in a statement. “Salt shipments are dependent upon the salt mines in the Great Lakes, and petroleum products are impacted by the commodity trading market, leading to fluctuations in quantities.”

A total of seven vessels have arrived at the port so far this season, well below the 21 ships seen at this point last year.

See the release and listen to an earlier podcast with Haen.

— Wisconsin Restaurant Association Executive Vice President Susan Quam told lawmakers a bill eliminating the tax on tips would support restaurant workers and owners.

“Eliminating income tax on tips would put cash back into the pockets of a significant number of workers of the restaurant and hospitality industry and could help restaurant owners with the current industry workforce,” Quam said yesterday.

SB 36 would create an income tax exemption for cash tips from customers. The fiscal estimate suggests this will cost the state $6.7 million each year.

Sen. André Jacque, R-New Franken, told the Senate Committee on Agriculture and Revenue the bill would help employees keep their “hard-earned” cash and would not harm business operations.

“It would especially benefit hardworking folks across Wisconsin’s robust tourism, restaurant, and tavern industries, while providing businesses that use a tip structure with a hiring incentive to recruit employees on the basis that they get to keep more of their own earned income,” Jacque said.

Sen. Mark Spreitzer, D-Beloit, said he’d like some changes to the bill on what kind of tips would qualify for exemptions.

“I think obviously, many people these days tip by credit card, and we don’t want the employee to be penalized because of how the customer chooses to tip,” Spreitzer said.

See more at WisPolitics.

— Separate Senate committees heard legislation that would provide additional boosts for data centers coming to Wisconsin.

The current state budget included a sales tax exemption on most purchases to support the development, construction and renovation of a qualified data center.

Sen. Romaine Quinn yesterday pitched SB 244, which would expand the definition of data centers that can receive a tax exemption to include those operating in a co-location with other businesses. He argued it would further positive outcomes for businesses and consumers.

“By clarifying eligibility, Wisconsin will have a greater opportunity to secure investments and economic activity generated from all types of data centers,” the Birchwood Republican told the Agriculture and Revenue committee.

See more coverage at WisPolitics.

— UW Health and Anthem Blue Cross and Blue Shield in Wisconsin have entered into a new contract after the organizations previously clashed over pricing negotiations.

The health system and insurer yesterday announced they’ve signed a new multi-year contract that will allow Anthem members to have “uninterrupted access” to care at UW Health locations. It covers all Anthem members covered by employer-based, Medicare Advantage, Medicaid and Affordable Care Act Marketplace health plans, the release shows.

UW Health CEO Dr. Alan Kaplan says the new agreement will “provide long-term benefits” for patients, while Anthem Wisconsin President Paul Nobile says members will be able to keep seeing the doctors they trust. He also notes the agreement will provide “more stable, predictable health care costs” in the years to come.

“We believe Anthem members should always have access to high-quality, affordable health care, which is why both sides stayed committed to working out an agreement,” Nobile said.

The new contract comes after UW Health and Anthem announced in March a coverage agreement extension to allow for ongoing contract negotiations, as the previous contract was set to expire in April. The extension was set to run through July 1.

Earlier this year, UW Health had said the insurer’s offer was unfair and much lower than what was offered to other health systems in the state, and also said Anthem wanted to be able to change payment terms without negotiations. But Anthem at the time said UW Health had been requesting drastic price increases that far exceeded the inflation rate.

See yesterday’s release and read more coverage on the earlier negotiations.

— This year’s planting of corn, soybeans and potatoes are all proceeding more quickly than usual, according to the USDA.

The agency’s National Agricultural Statistics Service reported Wisconsin farmers had completed 73% of corn planting as of Sunday, which is five days ahead of last year and three days ahead of the five-year average.

The report shows 66% of soybeans had been planted, which is five days ahead of last year and four days ahead of the average. And 84% of potatoes were planted, two days ahead of both last year and the average.

Meanwhile, the spring tillage was 86% complete — six days ahead of last year and three days ahead of the average.

See the release.

— Wisconsin’s April unemployment rate of 3.3% was the 12th lowest in the country for the month, tied with three other states.

That’s according to the latest figures from the U.S. Bureau of Labor Statistics. They show Wisconsin is tied for No. 12 with Alabama, Virginia and Wyoming.

While Wisconsin’s unemployment rate is well below that of Illinois — ranked No. 42 with 4.8% — it’s slightly higher than Minnesota’s rate of 3.2%, putting it at No. 10. Meanwhile, Michigan is No. 49 with 5.5% unemployment, and Iowa is tied for No. 16 at 3.5%.

— Appleton and Superior are getting about $14 million in total funding from the U.S. Department of Transportation, part of a $607 million package of 76 grants.

The agency recently announced the grant funding for infrastructure projects across the country.

It includes $12 million for Appleton for facility renovation, under the grant category covering buses and bus facilities. The other $2 million grant for Superior is for road work under a grant category related to railroad crossings.

See more in the release, including a full list of funded projects.

— De Pere’s The C.A. Lawton Co. has renewed its participation in the DNR’s Green Tier program, continuing a contract first signed in 2021.

The manufacturer of iron castings and machined parts is a Tier 2 participant, meaning The C.A. Lawton Co. has agreed to “rigorous” requirements negotiated with the Department of Natural Resources. Contracts under the Green Tier program establish incentives and DNR support for implementation of an environmental management system.

Under the renewed contract, DNR says the company plans to improve data collection, establish science-based targets and more.

“Our proactive collaboration with the DNR through the Green Tier program has been invaluable,” CEO Alex Lawton said in a statement. “This renewal underscores Lawton’s commitment to our community and the environment, and we eagerly anticipate continuing this partnership in the years to come.”

See the release.

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