Michigan Governor Gretchen Whitmer issued a stark warning Wednesday about President-elect Donald Trump's proposed 25% tariffs on Mexican and Canadian imports.
Speaking in Detroit, Whitmer argued that tariffs could severely impact the U.S. automotive industry and ultimately benefit China. She cited the integration of North American auto manufacturing, noting that "70% of all the auto parts we make in Michigan go directly to our neighbors." She warned that tariffs would disrupt supply chains and potentially lead to job losses on both sides of the border.
"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 told US News.
Whitmer discussed the potential impact on consumer costs, explaining that auto parts often cross borders multiple times during production. "Every time a Michigan auto part crosses over the border and gets taxed, those costs will be passed on to you at the dealership," she said.
The stakes are particularly high given that approximately a quarter of the $700 billion annual trade between Canada and the United States crosses through Detroit-Windsor. Recent data shows that the top 10 automakers with Mexican facilities produced 1.4 million vehicles in the first half of 2024, with 90% destined for U.S. markets.
Whitmer said she's been in talks with Ontario's premier and other Canadian officials to address the tariff situation.
Ford CEO Jim Farley has also expressed concern, stating that "a lot of our supply chain depends on countries from around the world, and so tariffs are really challenging for any company."
