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Michigan Governor Whitmer urges Donald Trump to ease tariffs; auto jobs under threat; automaker fears rising cost

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Michigan Governor Whitmer urges Donald Trump to ease tariffs; auto jobs under threat; automaker fears rising cost

Michigan Governor Gretchen Whitmer met privately with President Donald Trump this week to deliver a message she knew he might resist: his tariffs are hurting the state’s automotive industry, threatening jobs and profits in a sector central to Michigan’s economy.The Democrat brought a slide presentation to the Oval Office meeting on Tuesday, highlighting how Trump’s import taxes could cause severe economic damage in a state that helped elect him in 2024. It was Whitmer’s third White House meeting since Trump returned to office in January, but unlike her more public visit in April, this one was behind closed doors.According to people familiar with the talks, Whitmer also raised the need for federal support after an ice storm and asked to delay Medicaid changes, reported AP. Trump made no specific commitments.Under Trump’s trade measures, US automakers face a 50% tariff on steel and aluminum, 30% on parts from China, and up to 25% on goods from Canada and Mexico not covered by a 2020 trade deal. Meanwhile, German, Japanese and South Korean vehicles pay only a 15% import tax under new agreements. Trump has also threatened a 100% tariff on imported computer chips, key to modern vehicle production, exempting only domestic producers.Whitmer’s presentation, obtained by The Associated Press, showed that trade with Canada and Mexico has driven $23.2 billion in investment to Michigan since 2020. General Motors, Ford and Stellantis run 50 factories in the state, supported by over 4,000 parts suppliers, together employing nearly 600,000 workers.Automakers have repeatedly warned the administration that the tariffs will cut profits and hurt global competitiveness. Ford said tariffs cost it $800 million in the second quarter alone, while GM reported $1.1 billion in related expenses. Both say these costs could limit investment in new US factories.Since Trump took office in January, Michigan has lost 7,500 manufacturing jobs, federal data show. Smaller suppliers, such as Detroit Axle, have also felt the strain. Owner Mike Musheinesh said the market has shifted from growth to mere survival, though his company recently avoided closing a warehouse and laying off over 100 workers.Matt Grossman, a political science professor at Michigan State University, said the meeting underscored Whitmer’s unique position among Democratic governors, balancing state interests with political opposition to Trump’s agenda. “Everyone’s aware Michigan is a critical swing state and the auto industry has outsized influence,” he said.





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