Governor Gretchen Whitmer highlighted the potential economic fallout from former President Donald Trump’s proposed tariffs during a speech delivered at Michigan’s Heritage Hall in Lansing. She emphasized that such trade measures could disproportionately affect the state’s economy, especially its manufacturing and automotive industries, which are central to Michigan’s workforce. n nWhitmer pointed out that prolonged reliance on offshoring and outsourcing has already weakened the state’s industrial base, leading to the loss of hundreds of thousands of well-paying jobs and the closure of numerous factories. The aftermath, she noted, includes depopulation, declining infrastructure, and underfunded public services. n nThe governor stressed that while Michigan has limited authority over federal trade policy, the unpredictable application of tariffs undermines business confidence. Speaking from feedback gathered during an investment trip to Japan and Germany, she said long-standing investors in Michigan are hesitant to expand due to instability in national trade regulations. “Uncertainty leads to inaction, and inaction translates into lost employment opportunities,” Whitmer stated. n nShe identified the auto industry as particularly vulnerable, with 1.2 million residents—about 20% of the state’s workforce—tied to the automotive supply chain. Given that vehicle components frequently cross borders between the U.S., Canada, and Mexico—sometimes up to eight times during production—new 25% levies on imported auto parts, along with increased duties on steel and aluminum, could disrupt operations and raise production costs. n nIn response, Whitmer outlined a three-part strategy to strengthen Michigan’s economic resilience: streamlining the process for constructing manufacturing facilities, supporting job creation and retention, and encouraging technological advancement through targeted incentives. While acknowledging that financial incentives alone aren’t a complete solution, especially amid shifting federal policies, she argued that proactive state-level action is essential. n n“The competition among states and nations for high-value investment is intense,” Whitmer said. “We must equip our workforce and industries with the tools they need to stay competitive.” n
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— News Original —nWhitmer talks damage of Trump tariffs in economic speechn nTariffs lodged by President Donald Trump would have an outsized impact on Michigan’s economic standing, particularly its manufacturing and automotive sectors, Gov. Gretchen Whitmer said in an economic speech Tuesday. n n“Michigan understands the negative consequences of unfettered trade with other countries that don’t play fair,” Whitmer said. “Decades of offshoring and outsourcing shipped hundreds of thousands of good-paying, middle-class jobs overseas and shuttered hundreds of factories. The ripple effects were devastating. Fewer people, empty main streets, crumbling roads, and shrinking schools.” n nThe speech, delivered at Michigan’s Heritage Hall in Lansing, had two goals: addressing the state’s budget impasse and detailing the damage Trump’s tariffs would continue to have on the state. n nAlthough Whitmer acknowledged that the state had little control over the import taxes, she said it was irresponsible for the federal government to “capriciously swing the tariff hammer at every problem.” n n“I hear this from employers in Michigan and in every meeting on the investment mission to Japan and Germany,” Whitmer said. “Companies that have invested in Michigan for decades brought up uncertainty caused by our national tariff policy. They want to invest in Michigan, but tariffs are keeping them on the sidelines. Uncertainty breeds paralysis. And paralysis costs jobs.” n nWhitmer’s address came following a weeklong stint in Japan on a venture to secure job deals. The Democrat has made trips like this since she started her second term in 2023. n nThe governor said no industry is more at risk from tariffs than automakers and suppliers, with 1.2 million Michiganders employed in the automotive supply chain. That equates to one in five Michigan jobs. n n“Canada and Mexico are our biggest auto trading partners, with car parts crossing both borders an average of eight times,” she said. “But now, additional 25% tariffs have been slapped on foreign-made auto parts, including those from Canada and Mexico. Even higher tariffs on steel and aluminum, two materials crucial for building cars, exacerbate the problem. ” n nUncertainty, Whitmer said, has been crippling manufacturing from making investments. It was in that vein that Whitmer also hinted at new policies for job creation in Michigan, noting that the state needs new tools to leverage its workforce in manufacturing to compete with other states and nations. n nThe governor outlined three goals toward that aim: make it easier to build factories in Michigan, create and retain jobs to run them, and make it easier to incentivize innovation. n nA key tool Michigan has tried in the last few years was in the form of economic and monetary incentives for companies, which have mixed results, especially in the face of Trump’s tariffs. n nWhitmer seemingly acknowledged the difficulty of using incentives or other proverbial carrots to spur innovation and business growth on Tuesday. n n“No tool is perfect, but we have to do something to deliver more wins for Michigan, because competition is fierce,” she said. n n——— n nMichigan Advance is part of States Newsroom, a national 501(c)(3) nonprofit. For more, go to https://michiganadvance.com.