Trump Trade War Threatens Michigan Economy Ahead of Crucial Election

The Trump administration's ongoing trade war with Canada is set to hit Michigan's economy hard just weeks before voters there decide one of the country's most closely watched Senate races, according to an economic analyst.

Michigan's auto industry is particularly vulnerable due to its reliance on a supply chain that crosses the border with Canada. The state exported about $21.2 billion in goods to Canada in 2025, accounting for roughly 36 percent of its total exports, mostly consisting of vehicles and parts.

Citing the double whammy effect of tariffs and already-high living costs, David Clement, policy director at the Consumer Choice Center, warned that Michigan consumers will face higher prices on dealership lots. This situation is made worse by the frequent crossing of auto parts between Michigan and Ontario during production.

Clement noted that each border crossing can trigger new costs, adding that tariffs and retaliation can 'really gum up the very intertwined supply chain for cars between Michigan and Ontario.'