MMAC President Dale Kooyenga Criticizes White House Tariff Policies as Major Tax Increase Impacting U.S. Businesses

Dale Kooyenga, president and CEO of the Metropolitan Milwaukee Association of Commerce, criticized the White House's tariff policies as a significant tax increase, affecting over 1,800 businesses in southeastern Wisconsin. He highlighted the tariffs' unpredictable nature and their burden on companies and consumers. The Trump administration's tariffs, including a 10% baseline on imports and up to 145% on Chinese goods, have raised U.S. tariff rates and prompted retaliatory measures. Kooyenga noted businesses' fear of speaking out due to potential retaliation, and called for more precise trade measures instead of broad policies.

A Business Community Under Pressure

In an interview with the Milwaukee Journal Sentinel, Kooyenga expressed deep concern over the economic impact of the Trump administration’s tariff strategy, which has imposed a baseline 10% tariff on all imports and significantly higher rates—up to 145%—on goods from China. These measures, he argued, are effectively functioning as a tax on American businesses and consumers, implemented without congressional oversight.

“We’re looking at one of the largest tax increases in U.S. history,” Kooyenga said. “For a nation founded on ‘no taxation without representation,’ the fact that we have this level of additional costs placed on businesses, therefore consumers, and it’s at the discretion of just the executive branch, is not in the tradition of America.”

Kooyenga, a former Republican state legislator, said that while many Wisconsin Republicans have remained publicly silent, they have privately expressed concerns about the tariffs’ long-term consequences. “The sentiment that we’ve received back so far is that they also share a lot of the concerns that we’re hearing,” he noted.

Tariffs and Their Scope

The Trump administration’s tariff policy, reintroduced in early April 2025, includes a 10% baseline tariff on all imports and country-specific increases for nations deemed to have unfair trade practices. China, in particular, has been targeted with tariffs as high as 145%, prompting retaliatory measures from Beijing, including tariffs of up to 125% on U.S. exports.

While some exemptions have been made—such as for smartphones, computers, and other consumer electronics—the overall effective U.S. tariff rate has risen from 22.5% to 27%, according to the Yale Budget Lab. The administration has also signaled potential tariffs on semiconductors and pharmaceuticals, further expanding the scope of the trade measures.

These tariffs are levied on importers, who often pass the costs on to consumers through higher prices. Businesses that rely on global supply chains, particularly in manufacturing and technology, are facing increased costs and operational uncertainty.

Fear and Retaliation

Kooyenga emphasized that many businesses are afraid to publicly criticize the administration’s trade policies. “Businesses are very scared of saying this themselves,” he said. “But 99% of the conversations that I’m having is these companies want to be off the record because they fear retaliation both from the government, which is super sad in a democracy, and they also fear retaliation from certain segments of the population that are very politically extreme in one direction or another.”

This climate of fear, he argued, is stifling open dialogue and preventing a more balanced policy discussion. “Our elected representatives should be weighing and fighting for the stakeholders in their districts,” Kooyenga added.

Disruption Across Industries

The impact of the tariffs is being felt across multiple sectors. Farmers, in particular, have been hit hard by retaliatory tariffs from China and other countries. The American Farm Bureau Federation has warned that more than 20% of U.S. farm income is at risk due to shrinking export markets and rising input costs.

Manufacturers and builders are also facing higher prices for imported materials and components. “I’m concerned about them losing overseas markets,” said U.S. Senator Ron Johnson, R-Wisconsin. “I’m concerned about the cost to builders. I’m concerned about retaliation against our farmers.”

Kooyenga echoed these concerns, noting that businesses are scrambling to import goods before the 90-day tariff window closes. “Businesses are going to start loading inventory in. So as we speak, they’re very quickly trying to get products in under these 90 days so it’s outside of the tariff window,” he said. “But that creates all sorts of disruptions in the economy with labor availability, with insurance of your products. That’s absolutely not ideal.”

A Call for Precision, Not Populism

While Kooyenga acknowledged that some international trade practices—particularly from China—warrant scrutiny, he criticized the administration’s approach as overly broad and blunt. “There is manipulation in international trade in some industries,” he said, “but I would like to see Trump deal with these issues with a businessman’s scalpel, not a populist sledgehammer.”

The MMAC president’s remarks reflect a growing frustration among business leaders who feel caught in the crossfire of a trade war that shows no signs of resolution. With the 90-day pause on higher tariffs set to expire soon, companies are bracing for further volatility.

References

• 'One of the largest tax increases in U.S. history': MMAC president on tariff situation
• Trump's tariffs are putting consumers and businesses in a bind, tech association warns
• Trump, Tariffs, And Trade Turmoil
• Trump tariffs live updates: China signals readiness for talks if US shows respect
• Trump tariffs live updates: China signals readiness for talks if US shows respect
• WATCH: Trump plans to personally sign off on all trade deals
• Wisconsin | FREE WHITEWATER