Michigan Governor warns Canadian tariffs could hurt U.S. auto industry

Michigan Governor Gretchen Whitmer is sounding the alarm over the impact that tariffs targeting Canada could have on the US auto industry – while expressing her willingness to work with the incoming Trump administration. 

The details: During a speech at the 2025 Detroit Auto Show, Gov. Whitmer stressed the importance of Michigan’s longstanding trade relationship with Canada, citing specific examples of how imposing tariffs on products shipped from the country could affect the auto ecosystem.

• Given that certain vehicle components cross the U.S.-border more than once during the production process, Whitmer noted that tariffs would increase the cost to repair a US-made car as well as the overall price of a new vehicle.

• Gov. Whitmer – who noted that she’s not entirely against tariffs – said a punitive approach to the measures could damage the industry’s supply chains, slow production lines and cut jobs.  

• Canadian officials have threatened “tit-for-tat” tariffs on American products if the US imposes tariffs on products imported from Canada. 

Whitmer did not mention President-elect Donald Trump specifically when discussing tariffs, but she did talk about her willingness to work with the Trump administration for the best interests of Michigan when Trump takes office.   

Between the lines: Michigan – which President-elect Donald Trump flipped in the November election – has long been a major focal point of national policies and measures tied to the automotive industry, spanning funding initiatives to the current discussions around tariffs.  

• The automotive industry is a critical part of Michigan’s economy, accounting for 20% of the state’s workforce and contributing $304 billion to the state’s economy annually.  

• In May, the Biden administration announced $100 million in federal funding announced for small and medium-sized auto manufacturers for workforce development and facility upgrades.

• President-elect Trump has maintained that the actions he plans to take that could impact the auto industry, including a 25% tariff on goods from Canada, are aimed at protecting U.S. interests in the sector. 

Looking ahead: Though President-elect Trump has vowed to take action on many of his plans on day one, it will likely take time for his initiatives poised to impact the auto industry to play out, given their complexity. In the interim, Gov. Whitmer – whose final term ends January 2027 – will have two years to work with the Trump administration on behalf of Michigan to ensure that the state is well-positioned to meet the growing challenges in the auto sector.   

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