Recession Is Here!

Trump capitalized on weakness in manufacturing to win the presidency. Now it could cost him a second term.

- Shawn Donnan

The moment usually comes during Greg Petras’s commute through the rolling hills and cornfields of southern Wisconsin. Somewhere between his home near Madison and the factory he runs on the edge of the small town of Brodhead, the news will turn to the trade war, and President Trump will again claim that China is bearing the cost of his tariffs. That’s when Petras loses it.

“It’s just an outright lie, and he knows it,” says Petras, president of Kuhn North America Inc., which employs some 600 people at its farm-equipment factory in Wisconsin. For Kuhn, Trump’s trade war has produced a toxic mix of rising costs and falling revenue. “You’re slamming your fist on the steering wheel and saying, ‘Why would you tell people this?’ ”

About 250 Kuhn employees spent Labor Day caught in a two-week furlough, and they’re facing another one in early October. A shrinking order book means the company is cutting costs and slashing production as Petras and his managers peer out at a U.S. economy that looks far bleaker from the swing-state heartland than it does from the White House or Wall Street.

Kuhn’s circus-themed summer picnic survived, but weekend shifts are gone. A plant that just four years ago was humming along to a record $400 million in sales together with a sister plant in Kansas is running at 50% capacity. The five-year-old, $11 million paint shop that coats manure spreaders and livestock feeders in a distinctive “Kuhn Red” is at 39% capacity. Plans for a $4 million research and development building are on hold. “We’ll do it someday,” Petras says. “We just need things to be going in a better direction.”