The Michigan automotive industry will not be impacted by tariffs for one month as a way to prevent economic losses.
On Feb. 5, President Donald Trump’s administration announced a postponement of 25% tariffs placed on auto-related imports from Mexico, Canada and China. This comes after a morning of negotiations with Michigan’s major automotive manufacturers: Ford, General Motors and Stellantis.
On Feb. 4, President Donald Trump implemented tariffs as a way to combat the illegal crossing of immigrants and drugs from countries Canada, Mexico and China. However, Trump has since become more lenient with what the tariffs will exactly be imposed on.
“The president is open to hearing about additional exemptions,” White House Press Secretary Karoline Leavitt said after the postponement of the tariffs. “He always has open dialogue, and he’ll always do what’s right, what he believes is right for the American people.”
Automotive companies warned that this tariff would push manufacturers out of the country, and companies would instead look for foreign alternatives that are less costly for their companies. In addition, many representatives of these companies warned that it would negatively affect their businesses and the automotive industry.
MichAuto is a trade group that represents automakers in Michigan. They are the only automotive and mobility association that works to connect and grow the automotive industry in Michigan.
MichAuto Executive Director Glenn Stevens Jr. discussed the possibilities of how these tariffs would impact the automotive industry, specifically for individuals who want to purchase a car.
“Tariffs do increase the costs of doing business, parts move back and forth across our borders here in Michigan and in Ontario everyday — and eventually that shows up here in consumer prices,” Stevens said.
He went on to agree that car prices will become more expensive but expressed that these prices will accumulate over time.
“Parts move multiple times just in Windsor and Detroit, parts move across the border to build up components,” Stevens said. “If this is prolonged — we hope it’s not and based on what we’re hearing we’re optimistic about that, but if it is prolonged it will get painful.”
Leaders and government officials in Michigan took to social media to express their relief at the delay.
After the tariffs were announced, Governor Gretchen Whitmer traveled to the White House to dispute how these tariffs would negatively impact Michigan families and auto workers.
“Grateful that broad, 25% tariffs on Michigan’s auto industry are being pulled back by the administration. We all want to lower costs, bring manufacturing back home, and make more cars in America,” Whitmer said in a statement posted on X. “These tariffs would jack up prices and lead to layoffs. We just can’t afford it.”
Congressman John James (R-MI) expressed his gratitude for the delay as well.
“We will continue to work to get more cars built in MI, more cars sold around the world, and more jobs back in MI!” James said in a statement on X. “President @realDonaldTrump is standing up for Michigan workers and Michigan’s economy.”
The tariffs on automotive-related trade have been delayed until April 2, granting manufacturers time to consider how they will combat the rising costs.
