Michigan Governor Gretchen Whitmer has warned the incoming Trump administration that the threatened 25-percent tariffs on imports from Canada and Mexico could hurt the U.S. auto industry and drive up vehicle prices.
During a speech given in Detroit, Whitmer said the imposition of tariffs would affect supply chains, slow down production lines and eliminate “jobs on both sides of the border”.
As reported by Automotive News, Michigan’s Governor added an additional warning:
“Think about this: 70 percent of all the auto parts we make in Michigan go directly to our neighbors.... The only winner in this equation is China. They would love nothing more than to watch us cripple America’s auto ecosystem all by ourselves. This is a matter of national security.”
Whitmer reiterated that many auto parts cross the border several times before becoming part of an assembled vehicle. She also pointed out that a quarter of the $700 billion USD in annual trade between Canada and the U.S. passes through the Detroit-Windsor border.
“Every time a Michigan auto part crosses over the border and gets taxed, those costs will be passed on to you at the dealership,” said Whitmer. “Sometimes, it happens a couple times throughout production. That means you’ll pay more to buy a Silverado, fix the engine in your Mustang, or replace the fender on your Jeep Grand Cherokee.”
Other mind-boggling figures included one pertaining to the top ten automakers with plants in Mexico. Together those plants assembled 1.4 million vehicles in the first six months of 2024, and 90 percent of them were purchased by Americans.
Ford boss Jim Farley said last week that much of his company's supply chain depends on countries around the world, and that tariffs were a real challenge.
Gretchen Whitmer said she and her office had been in active discussions with Ontario Premier Doug Ford and other Canadian officials “to explore ways to collaborate on tariffs, reduce the cost of doing business and protect Michigan industry and consumers.”
Donald Trump has threatened to impose 25 percent tariffs as soon as he takes office on January 20. The clock is ticking.
