Tariffs Could Send Auto Prices Soaring in Michigan

Michigan's economy could suffer if President Donald Trump's tariffs on Canadian goods go into effect. The Detroit Regional Chamber President and CEO, Sandy Baruah, says the state's consumers will feel the impact of higher prices for home remodels, paper products, plywood, furniture, and automobiles.

The auto industry is particularly vulnerable due to its integrated supply chain with Canada. Aluminum, which is increasingly used in cars for its lightweight properties, is produced in Canada using hydropower at a lower cost. Baruah notes that the U.S. needs this aluminum to build cars domestically.

While Trump argues that tariffs can encourage companies to move manufacturing back to the U.S., Baruah cautions that these jobs are not the same as those of the past. Automation has reduced the number of jobs associated with increased industrial production, and manufacturing positions today often pay lower wages and lack benefits.

Baruah also warns that a prolonged trade dispute between the U.S. and Canada could weaken North America's competitive position against China. He emphasizes the importance of cooperation among the three countries to combat unfair Chinese trade practices.