Trump Defends Tariffs Policy Amid Slow Job Growth and Rising Unemployment

US President Donald Trump defended his economic policies in Michigan, a state severely affected by his tariffs, especially in the automobile sector. Speaking at a General Motors plant in Milford, Trump claimed that his 'historic' tariffs are reviving the auto industry and forcing companies to relocate their overseas operations to the US.

However, job growth in Michigan has slowed significantly, with the state experiencing one of the highest unemployment rates in the country, standing at 5.1% in May according to State officials. Trump's comments come as he ramps up rally-type appearances ahead of the upcoming midterm elections in November.

The economy of Michigan relies heavily on nearby Canada, which has been hit by a range of US tariffs - taxes on imported goods that are paid to the government by companies bringing in the foreign products. A 25% levy is imposed on non-US parts used in Canadian-assembled passenger vehicles, as well as parts not compliant with the current North American free trade pact, or USMCA.

Canada has responded with 25% tariffs on US vehicles and parts not compliant with the USMCA. Trump stated that 'The rule is straightforward: Build your trucks or cars outside the United States and you'll pay a fee for the right to sell them here and profit,' adding, 'Build your plant in Michigan or anywhere else in America and produce the vehicles right here at home, and you'll face no tariff at all.'

The White House pointed to GM's $6bn investment in US manufacturing as evidence that Trump's economic policies are working. Last year, vehicle production fell in all three North American countries, though Canada saw the largest decline of 5.4%, according to an analysis by TD Bank.