Brace yourselves, Michigan. Donald Trump’s reckless tariffs on Mexico and Canada are taking effect
TODAY, and the economic fallout will be nothing short of catastrophic—especially for those of us in the auto industry. The very industry that defines our state, employs our workers, and drives our economy is about to be kneecapped by the man who claims to be its savior. But make no mistake—this disaster won’t stop at the auto sector. Hospitals, farmers, small businesses, and every Michigan consumer will feel the squeeze as costs for essential goods, fuel, and medical care soar.
Michigan is Ground Zero for the Damage
Automotive experts predict that car prices will skyrocket by as much as $12,000 per vehicle due to Trump’s sweeping tariffs. Ford CEO Jim Farley didn’t mince words when he warned that these tariffs would “blow a hole in the U.S. industry that we have never seen.” And he’s right. The auto industry has spent decades integrating its supply chains with Mexico, where General Motors, Ford, and Stellantis operate nearly a dozen plants. These factories aren’t just assembly lines—they’re essential to keeping costs manageable and production flowing.
If Trump follows through with his insane 25% tariff, the price to manufacture a crossover utility vehicle will jump at least $4,000. A large SUV with significant parts from Mexico? That’ll cost an additional $9,000. Pickup trucks? $8,000 more. And the hardest hit? Electric vehicles, which will see a price hike of $12,000, effectively kneecapping EV adoption in a country already lagging behind on climate action.
Michigan will be hit harder than any other state. More than 9% of our entire economy is tied to the auto industry—the highest of any state. The University of Michigan predicts that Trump’s steel and aluminum tariffs alone will slash transportation equipment manufacturing jobs by at least 600 through 2026. And that’s just the start. With car sales already suffering from high prices and rising borrowing costs, these tariffs will hammer our state’s working families and small businesses. The rise in car prices will push new vehicles out of reach for many working- and middle-class families, forcing them to rely on older, less efficient cars and leading to higher maintenance costs.
It’s not just the auto industry, either. Our hospitals are in trouble too. Many of the medical supplies Michigan hospitals rely on—including blood pressure cuffs, sterile gowns, gloves, and face masks—come from China and Mexico. The additional import tariff on these essential medical products will drive up costs for hospitals already struggling to stay afloat, translating to higher medical bills for every Michigander.
Agriculture isn’t safe, either. Michigan imports $1.5 billion in food and agricultural products from Canada annually. And let’s not forget—Mexico and Canada buy 66% of everything we export. So while we pay more for our cars, groceries, and hospital visits, Michigan’s businesses will also lose billions due to retaliatory tariffs from our largest trade partners.
And now, expect pain at the pump too. Oil and gas companies have indicated that tariffs could drive up fuel prices, as about 60% of the crude oil the U.S. imports—particularly in the Midwest—comes from Canada. But Canada has floated the possibility of charging what we call export taxes, which would artificially increase the price of crude oil for U.S. buyers as retaliation for the tariffs. That means higher gas prices for every driver in Michigan.
The Reality of Trump’s Tariff Lies
Trump loves to claim that tariffs bring jobs back to America. The truth? That’s complete bullshit.
Let’s look at history. When Trump imposed 25% tariffs on imported steel in 2018, he swore it would save American jobs. By 2020, total employment in the U.S. steel sector was 80,000—down from 84,000 in 2018. Tariffs didn’t save jobs; they killed them. And now he’s running the same scam again, but this time, the damage will be even greater.
The non-partisan Peterson Institute for International Economics estimates that these tariffs will slash American incomes across the board, with the hardest hit being working-class families, who will see up to a 4% drop in their earnings. That translates to a loss of about $1,700 per year for the average household. Other studies put the number even higher, estimating middle-income families could lose $2,500 to $3,900 annually.
And let’s talk about inflation—because yes, these tariffs will make it worse. Economists warn that another round of Trump’s reckless tariffs will drive up domestic inflation again, making everything from groceries to home goods even more expensive. The stock market has already reacted, with all major indexes taking a nosedive.
These aren’t just numbers on a screen. They represent lost retirement savings, increased costs for businesses, and a more unstable economy for all of us.
A War on Michigan’s Economy
Michigan’s auto industry, hospitals, and agricultural sector are about to get steamrolled by Trump’s trade war. Yet, the same people who claim to support “working-class Americans” are silent. Where are the Republicans who represent Michigan in Congress? Where is John James, who racked up more Stock Act violations than any other member of Congress while pretending to care about Michigan families? Where is Lisa McClain, who’s spent her career serving corporate interests over her constituents? (Just check her corporate PAC contributions list.)
We know where Trump is—golfing at Mar-a-Lago while Michiganders get crushed by higher prices and job losses.
The reality is, Trump’s tariffs are nothing more than a tax on American businesses and consumers. They don’t bring jobs back. They don’t punish China. They don’t make us stronger. They make everything more expensive and drive economic instability.
And let’s not forget: Canada is Michigan’s largest international trade partner and our neighbor and ally. Our state imports over $50 billion in goods from Canada and exports $27.5 billion back. Tariffs on Canada don’t just hit their economy—they hit us directly. Retaliation is inevitable, and Michigan will bear the brunt of it.
The bottom line? These tariffs are a disaster for Michigan. We’re staring down a future of higher prices, job losses, and economic uncertainty, all because Trump is playing economic Russian roulette with our livelihoods. He doesn’t care about working people—he never has. This is just another con, and we’re all paying the price for it.
And if you thought any of this was about lowering costs, just check your grocery bill. Turns out, slapping tariffs on foreign products does absolutely nothing to make eggs cheaper. But hey, I’m sure Trump will have a solid concept of a plan for that…right after his next round of golf.
