Last year’s trade volatility has persisted into 2026, as Midwest businesses are trying to adjust to the uncertain environment and higher costs.
“We were insanely volatile last year, as I think everybody knows, and the tariff changes were coming fast and furious. I would say that we’re equally as volatile this year, it just looks a little different,” M.E. Dey & Co. CEO Sandi Siegel said yesterday. “To a great extent, we’ve all come to expect it, right, so even though we don’t know what’s coming, we know uncertainty is certain.”
Siegel was part of a live “Talking Trade” panel discussion recorded before an audience at Waukesha County Technical College. It was moderated by E.M. Wasylik Associates founder Ken Wasylik, who co-hosts the podcast.
Yesterday’s discussion explored the latest developments impacting international trade, from new tariffs with Canada to the war in Iran and ongoing disruption of trade through the Strait of Hormuz and elsewhere. These developments, along with higher prices, are influencing the behavior of companies shipping products in and out of Wisconsin, panelists said.
Wasylik noted the uncertainty has shortened planning windows for his client base.
“Two years ago, long-term planning was maybe five to seven years. Now it’s three years,” he said, adding “short-term planning was one to two years you could budget. Now it’s down to 30, 90 days.”
Brandon Rogers, vendor and supply chain coordinator at Verlo Mattress in Milwaukee, said his typical cost for transporting and insuring a shipping container has jumped from $6,000 to about $11,000, calling it a “pretty significant increase for us.”
The latest trade tensions with Canada in particular have had an impact on the furniture company. A potential deal with a Canadian firm for bed product components fell through when the latest 50% tariffs went into effect, he noted. Rogers called for a “u-turn” on tariffs, arguing they’re creating unnecessary barriers for his customers.
“We all end up paying for it,” he said.
At the same time, the company is facing “huge shortages” and soaring prices for polyurethane foam, one of the main products for making mattresses.
“One of the main chemical components, polyurethane, is in short supply because of all the damage done to the oil facilities in the Middle East,” he said, adding “there were huge shortages, prices were going up significantly and we haven’t really seen that come down yet.”
Siegel said higher fuel costs, also linked to the conflict in the region, are increasing freight rates for her clients as well. She noted shipping a container from Asia to Chicago, for example, has spiked from more than $2,000 to more than $11,000.
“When you’ve got, you know, attacks going on on goods transiting through that area and the re-routing of cargo because of the concerns, it disrupts the whole flow of cargo,” she said. “It’s also driven up the cost of cargo insurance, because there’s that much more disruption, pilferage, war, etcetera.”
Meanwhile, an educator with WCTC’s School of Business yesterday emphasized the importance of international trade for Wisconsin business success.
Susan Dragotta, a supply chain and global business instructor for the college, noted 96% of the global population exists outside of the United States and companies will continue to look overseas for customers and sourcing materials.
Despite the challenges posed by tariffs, conflict and uncertainty for importers and exporters, she expressed confidence in the state’s business community.
“We have thousands of Wisconsin companies that export, and we’ve got 200 markets that they export to, and decades of building relationships around the world,” Dragotta said. “I trust that they’ll find a way to make those still work, regardless of the environment, or continue to adapt to the environment.”
