Schaumburg Business Association talks tariffs, sidesteps ideological issues
Members of the Schaumburg Business Association were promised and received a nonideological overview of tariffs and a history of their use by the U.S. on the 100th day of the second Trump administration Wednesday.
Paul Jarzombek, president and CEO of Bensenville-based LR International, led SBA’s 2025 global trade update hosted by Mazak Corporation in Schaumburg.
“I’m not going to present my opinion,” Jarzombek said. “I’m not going to color this so that it’s good, bad, medium. The goal here is to establish a baseline of understanding of what’s going on.”
The U.S. began using tariffs as a source of revenue for the federal government in 1789. Jarzombek said it was perhaps ironically only the fourth action taken after winning a war based on freeing the former colonies from taxation by a foreign nation.
But it remained the only source of money until the early 20th century when income tax exceeded it.
He laid out the various reasons the Trump administration has given for its pursuit of tariffs against various countries.
These include prompting a response on issues of international relations, such as drug trafficking; getting other countries to change their behavior; leveling the tariff field; a desire to return certain manufacturing industries to the U.S.; and simply providing revenue as was the case back in 1789.
Certainly, other countries have tariffs and other trade barriers, Jarzombek said. Rice can’t be imported in Japan unless the country’s own supply is jeopardized, for instance.
One example often misunderstood is Canada’s 250% tariff on U.S. imports of dairy products — kicks in only rarely when such imports exceed a certain level. Almost all the time, that tariff stands at 0%, Jarzombek said.
For now, Canada, Mexico and the U.S. are maintaining their North American trade agreement. But for every other country but China, the Trump administration established a pending 10% tariff.
China faces a 25% tariff on all goods, a 25% tariff on steel and aluminum, specifically, a 20% tariff seeking a response to fentanyl arriving in the U.S., and a 125% reciprocal penalty.
Jarzombek likened the situation to a shoving match between two people trying to demonstrate their toughness.
“We are certainly China’s biggest customer in the world, no doubt about it,” he said. “China’s economy is based on manufacturing and exporting.”
While an eventual deal seems likely just for the world economy to function, it’s unlikely to be one that makes the two nations any friendlier, he added.
Weaponized tariffs between the two economic giants will continue to be a tool, but deals with other countries are likely as Trump’s team seeks to collect wins, Jarzombek said.
But, Jarzombek added, consumers should not judge their ability to weather a storm of tariffs based on today’s prices. If they do take effect this summer as suggested, the outcome will be stunning to many, he added.
SBA President Andrea Biwer said she was inspired to bring Jarzombek to her membership after being an audience member herself at a recent meeting of the village of Schaumburg’s Business Development Commission.
“What stood out to me most was his clarity and balance,” Biwer said. “In a time when trade conversations often get tangled in politics or oversimplified sound bites, Paul managed to cut through the noise with straight facts, real-world examples, and a grounded perspective. He has a unique ability to take a complex, global topic and translate it into something not just understandable, but actionable.”
She said Wednesday’s presentation was further enhanced by the practical tips for businesses to navigate the new reality from Chantal Wittman, senior vice president of the International Trade Services Group at Wintrust Financial.
“They highlighted where businesses have opportunities to adapt, rather than just brace for impact,” Biwer said.