Michigan Governor Gretchen Whitmer continues to sound the alarm about the threat that tariffs and China pose to the American auto industry, with her latest warning coming in her keynote address at the Detroit Auto Show.
The details: During her speech at the show, which kicked off Jan. 14, Whitmer told attendees the industry is facing unprecedented times due to tariffs and global competitors, more specifically Chinese-based companies, reports M Live.
U.S. manufacturing has contracted for nine straight months, leading to job losses and production cuts, with the unpredictability of national policies like tariffs creating instability, said the Michigan governor.
China is the primary global threat to Michigan and the broader U.S. industry, in large part due to the country’s dominance across the global supply chain, she added.
“They’ve captured so much of the market share everywhere, except for the U.S. and Canada,” said Whitmer.
The governor is also urging the U.S. to build on the United States-Mexico-Canada Agreement (USMCA) rather than abandoning it as President Donald Trump has suggested he might do.
Why it matters: For dealers, Whitmer’s warning is a reminder that policy decisions on tariffs can directly affect vehicle pricing, availability, and long-term investment in U.S. plants. A more fragile manufacturing base can mean more production volatility, sharper cost swings, and fresh pressure on affordability for customers walking into the showroom.
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Between the lines: Whitmer’s keynote wasn’t all dismal. She also highlighted some of the strides Michigan has made recently in solidifying its footing in the auto industry.
She spoke about Stellantis’ investments at Warren Truck Assembly and Detroit Assembly Complex Jefferson, GM’s increased production at Orion Assembly, and Ford’s progress on its BlueOval Battery Park in Marshall.
The governor also pointed out supplier investments from companies such as Geotab, Laserglow, and Magna International.
Bottom line: The message out of Detroit is a mix of warning and reassurance: global competition and tariffs are real threats, but OEMs and suppliers are still betting big on Michigan and North America. Dealers who track these developments and stay close to OEM production and incentive plans will be better prepared to navigate future supply swings and to explain to customers why prices and availability look the way they do.
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