Concern is growing among Michigan Democrats about the impact of tariffs, which President Donald Trump put in place Tuesday, could have on the state’s economy.
In her State of the State address last week, Gov. Gretchen Whitmer warned the 25% tariffs on Canada and Mexico would wreak “havoc” on Michigan.
Lt. Gov. Garlin Gilchrist II doubled down on that on Tuesday, after the tariffs went into effect.
“The message is clear: these tariffs are an existential threat to the well-being of Michiganders everywhere,” he said on social media.
Trump and Republicans argue the tariffs are leveling the playing field with other nations, as Trump also uses them as a negotiating tactic to force Canada and Mexico to address issues like illegal immigration and drugs.
“Stop the flow of illegal drugs! President Trump gave Canada and Mexico all the time in the world to help, and for what? It is time to force them into action,” said state Rep. Matt Hall, a Republican and speaker of the Michigan House. “This targeted tariff plan will finally get Canada and Mexico off the sidelines and close our borders to fentanyl.”
Others see tariffs as a way to encourage companies to bring back manufacturing to the U.S., with Republicans arguing that it’s already working.
“Apple announced a $500 billion investment in the United States,” said U.S. Rep. Lisa McClain, R-Michigan, on Tuesday. “President Trump’s leadership is already encouraging companies to invest in our communities and the American workforce.”
Since the tariffs went into effect, Canada announced retaliatory tariffs. These include a 25% tariff by the Canadian province of Ontario on electricity that it sells to Minnesota, Michigan and New York.
It’s unclear the effect this could actually have on Michigan consumers as both DTE Energy and Consumers Energy, two of Michigan’s largest energy companies, told Fox47 that they do not import electricity from Canada.
Yet, energy is not the only concern for the state. Michigan’s automotive industry is already raising flags about the impact tariffs could have on it if they continue long-term.
“The tariffs’ harmful effects will extend beyond trade relationships and will cause businesses to purchase and produce fewer products, hire fewer employees, and increase prices to the detriment of consumers,” said Glenn Stevens Jr., executive director of MichAuto. “Michigan’s economic viability and business attractiveness will be reduced to collateral damage.”
According to MichAuto, Michigan imported $46 billion in goods from Canada and $69 billion from Mexico in 2023, with much of that in the automotive industry. It stated that this makes the state “particularly vulnerable” to the negative impacts of tariffs.
Michigan State University professor Jason Miller, a supply chain expert, also recently highlighted his concerns.
“Tariffs on Canadian and Mexican auto parts and finished vehicles will be highly detrimental to Michigan,” he said. “For example, over 50% of imported auto parts from Canada have a final destination in Michigan.”
Some in Trump’s administration are predicting a deal could be struck ending some or all of the tariffs by as soon as Wednesday.
The Michigan Democratic Party has joined many of the state’s Democrat politicians in calling for an end to the “trade war,” which they estimate will cost Michiganders $1,200 a year.
“Trump just raised the prices on everything from car parts to groceries to that new phone you’ve been eyeing,” said the party in a statement. “This kind of uncertainty and chaos is setting our economy up for real trouble.”
U.S. Sen. Elissa Slotkin, D-Michigan, gave the Democrat response to Trump’s State of the Union Tuesday night. In her speech, she also highlighted concerns with tariffs.
‘Tariffs on allies like Canada will raise prices on energy, lumber, and cars, and start a trade war that will hurt manufacturing,” she said. “If he’s not careful, he could walk us right into a recession.”
