Michigan governor warns Trump tariffs on Mexico, Canada might hurt US auto sector

By David Shepardson and Nora Eckert

WASHINGTON/DETROIT (Reuters) -Michigan Governor Gretchen Whitmer warned on Wednesday that potential 25% tariffs on imports from Mexico and Canada advised by President-elect Donald Trump might hurt the U.S. auto sector, enhance automobile costs and profit China.

The Democratic governor stated in a speech in Detroit that imposing tariffs would harm provide chains and sluggish manufacturing traces and would minimize “jobs on each side of the border.

“Take into consideration this: 70% of all of the auto elements we make in Michigan go on to our neighbors…. The one winner on this equation is China. They’d love nothing greater than to observe us cripple America’s auto ecosystem all by ourselves. This can be a matter of nationwide safety,” Whitmer stated.

She famous that many vehicle elements cross the border a number of instances earlier than they’re a part of a completed automobile, and 1 / 4 of the $700 billion of annual commerce between Canada and the US crosses the Detroit-Windsor frontier.

“Each time a Michigan auto half crosses over the border and will get taxed, these prices will likely be handed on to you on the dealership,” Whitmer stated. “Typically, it occurs a pair instances all through manufacturing. Which means you’ll pay extra to purchase a Silverado, repair the engine in your Mustang, or exchange the fender in your Jeep Grand Cherokee.”

The highest 10 automotive producers with Mexican crops collectively constructed 1.4 million autos over the primary six months of 2024, with 90% heading throughout the border to U.S. patrons.

Ford (NYSE:F) CEO Jim Farley stated final week that “loads of our provide chain is determined by nations from all over the world, and so tariffs are actually difficult for any firm”.

Whitmer stated she and her workplace had been in energetic discussions with Ontario’s premier and different Canadian officers “to discover methods we will collaborate on tariffs, decrease the price of doing enterprise, and defend Michigan trade and customers.”

The Trump transition workforce didn’t instantly remark.

In November, Trump stated on social media that instantly after his Jan. 20 inauguration, he would signal “all obligatory paperwork” to start charging Mexico and Canada 25% tariffs except unlawful immigration and fentanyl trafficking are halted.