Michigan Governor Gretchen Whitmer has issued another warning about the threat tariffs pose to the North American auto industry.
The details: Whitmer, who has been outspoken about the sweeping levies imposed by President Trump, reaffirmed her concerns during a keynote address in Toronto Wednesday, spotlighting how the policies are rippling across the U.S. and Canadian auto sectors.
Auto companies in both countries are stockpiling parts and laying off workers.
Bonus checks for autoworkers are shrinking by thousands of dollars.
Auto suppliers are facing higher costs and delaying business expansions.
“The blockade of the Ambassador Bridge in 2022 hit our auto and agriculture industries hard,” said Whitmer. “Commerce stalled and workers lost a combined $144 million in wages. Tariffs are threatening to make that temporary nightmare a permanent reality.”
Why it matters: Tariffs are creating meaningful cost increases across the North American auto supply chain while shrinking autoworker pay and forcing suppliers to delay growth.
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Between the lines: Whitmer, who noted that duties on automotive goods entering the U.S. totaled around $17.4 billion, also warned that China is poised to benefit most from the tariffs.
“When we say no to Canada, we say yes to China,” said Whitmer.
Her reasons:
Tariffs on Canada and Mexico increase costs and inefficiencies for U.S. automakers.
By making North American production costlier, tariffs could allow China's subsidized, low-cost auto industry to capture more market share in Canada and Mexico.
“Just look at Europe, where Chinese EVs and batteries are gobbling up market share,” said Whitmer, noting that the U.S., Canada, and Mexico conduct nearly $1.8 trillion of trade under the United States-Mexico-Canada Agreement, or USMCA.”
“More than 12 million European direct and indirect auto industry jobs are at risk. And the iconic German brand, Volkswagen, was forced to shut down a plant for the first time in its 87-year history last year,” she added.
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