Wisconsin U.S. Sen. Ron Johnson called President Donald Trump’s move to enact reciprocal tariffs on dozens of U.S. trade partners “a bold but risky action” in a PBS interview.
Johnson said he has spoken with Wisconsin manufacturers and farmers and many agree with what Trump is trying to accomplish with the tariffs after the U.S. has “not been treated fairly.”
“They realize that there are many crucial and vital products that are vital to our national security that we don’t manufacture here, and in some way, shape or form we’ve going to have to reshore them,” Johnson said. “They agree with what President Trump is trying to accomplish, but I think everybody’s bracing to see what the fallout and really how painful this experience is going to be.”
Johnson, a member of the Senate Budget and Finance committees, appeared on several TV news shows over the past four days as the Dow Jones Industrial Average dropped 2,200 points Friday, or 5.5% of its value, its biggest drop since 2020 during the height of the COVID-19 pandemic.
“I’m concerned, the stock market is very concerned…” Johnson told CBS News. “I don’t have the president’s strongly held belief this is something that absolutely what has to be done. But he’s president, I am not, he ran on this and I hope he’s absolutely right.”
Johnson said that he views himself as a free but fair trader and the U.S. has not been treated fairly. He said he will continue to collect information and keep the Commerce Department and Trump’s administration informed on the tariff’s impact in Wisconsin.
“He’s got very smart economic advisers,” Johnson told PBS. “This is a long-held belief on his part that we have to impose discipline on our trading partners. And my guess is he’s going to have to judge at what point he’s going to have to change course, if at all.”
Johnson said that the tariffs particularly impact Wisconsin manufacturers who use components from abroad and then attempt to sell the finished product abroad.
“That’s going to make you less competitive overseas,” Johnson said. “It’ll drive up costs. When prices rise, demand falls. That could dampen our economy as well.”
Johnson then reiterated that he hopes the tariffs succeed because that would mean the U.S. is succeeding.
“It is a double-edged sword,” Johnson said. “There’s going to be benefit, there’s going to be cost. I just can’t predict it.”
What’s clear is that the immediate impact on U.S. markets was heard by Johnson as the Nasdaq dropped by 5.8% Friday after falling 6% on Thursday and the S&P closed with a 5.97% loss after losing 4.84% in value Thursday.
“What’s also indisputable is the markets are down about 8% in just two days and I’m getting all kinds of reaction from businesses, farmers in Wisconsin that are highly concerned about what’s happening,” Johnson told Fox Business News. “Those are the facts. All I can do is kind of report the reality to the administration and let them know how these actions are impacting my constituents.”
