On August 5, Gov. Gretchen Whitmer met with President Donald Trump to discuss the impact his executive orders and tariffs will have on Michigan’s economy and Medicaid program.
This will be the third meeting between the two since the president took office earlier this year. Whitmer met with the president in April, where she was caught off guard by a sudden public meeting surrounded by news reporters and cameras, causing her to cover her face with a folder.
Whitmer believes that President Trump’s tariffs are “dragging down Michigan’s economy,” with the automotive industry taking a significant hit from imports and exports to Canada and Mexico. Tariffs have hit their highest rate since 1910, a fact that Whitmer believes is “unacceptable.”
“Let’s lead with common-sense trade policies that lower costs and strengthen our supply chain,” Whitmer said in a statement on X. “While I can’t control the tariff policy, I will continue fighting to grow Michigan’s economy while keeping more money in the pockets of working families. Where it belongs.”
On Feb. 1, President Trump signed an executive order imposing a 25% tariff on imports from Canada and Mexico. In addition, he also placed a 10% tariff on imports from China. He expressed the reason for the tariffs to be a way of holding these countries “accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”
“Tariffs are a powerful, proven source of leverage for protecting the national interest. President Trump is using the tools at hand and taking decisive action that puts Americans’ safety and national security first,” the White House said in a statement.
Automotive companies are facing import taxes on parts they receive from these countries. They are met with 50% import taxes on steel and aluminum, 30% taxes on car parts from China and a top rate of 25% on imports from Canada and Mexico. Canada responded with 25% tariffs on cars manufactured in the U.S.
Michigan Automakers have already dealt with billions of dollars being lost due to the tariffs.
General Motors (GM) reported their second-quarter net income, which has since fallen 35% compared to the same quarter from the previous year. The net loss is estimated to be around $1.1 billion.
Ford has reportedly taken out a $3 billion term loan credit agreement. While the company has not disclosed as to why they took out the loan, they are often used as leverage in case a company is expected to face economic difficulties. The loan was administered through JPMorgan Chase Bank and Ford must maintain at least $4 billion of its own money to upkeep the agreement.
Stellantis, a conglomerate to many automotive companies such as Jeep, Dodge, Fiat, Chrysler and Peugeot, has recorded a net loss of $2.65 billion in the first half of this year.
“My first weeks as CEO have reconfirmed my strong conviction that we will fix what’s wrong with Stellantis by capitalizing on everything that’s right with Stellantis — starting from the strength, energy and ideas of our people, combined with the great new products we are now bringing to market,” CEO Antonio Filosa said in a statement. Filosa became the CEO in May after former CEO Carlos Tavares resigned due to conflicting opinions within the company.
On July 31, Whitmer signed an executive directive to help calculate the impact that the tariffs and Medicaid cuts have had on Michigan’s businesses. The order required reports from the following departments:
- Department of Agriculture and Rural Development
- Department of Environment, Great Lakes and Energy
- Department of Natural Resources
- Department of Technology, Management and Budget
- Department of Transportation
- Michigan State Housing Development Authority
Each department will have 30 days to submit a report that outlines the impact the president’s tariffs have had on their ability to function and the future impacts it will entail.
Whitmer also made sure to include the effects that Medicaid cuts will have on Michiganders when speaking to President Trump. Under the newly signed Big, Beautiful Bill, between 12 million and 20 million Americans could lose Medicaid benefits.
She requested for a three-year transition period as a way to delay the effects of the Medicaid cuts. She is hoping that within that timeframe the government will be able to help create a stronger system that will cut less Americans off of their healthcare plans.
Whitmer has been an avid supporter of Medicaid and has been very vocal about the necessity of it when speaking online to Michiganders.
“No one should have to choose between a doctor’s visit and putting food on the table. I’ll fight like hell to keep health care affordable for every Michigander,” Whitmer said in a post on X.
On August 8, Whitmer signed another executive directive, this time aimed at the Michigan Department of Insurance and Financial Services to help inform citizens on their current options to keep or receive insurance through the Affordable Care Act marketplace plans.
