Tariff uncertainty leaves trail of questions for auto industry, Michigan economy

FOX 2 - Tariffs on cars, trucks and some auto parts could make car companies think again about what they make and where they make them.

Some dealerships are trying to get customers in the door before a major swell in prices possibly hits. All this plus, tariffs may impact the economy in our state.

Big picture view:

"It’s absolutely going to affect the bottom line," said Michael Glassman. "But right now is the best time to come in."

The automotive and mobility industry contributes $304 billion  to Michigan’s economy every year. And numbering just over a million  jobs, it represents 20 percent of Michigan’s workforce.

Glassman of Glassman Automotive Group sells cars - and what happens with tariffs affects him and his customers.

"We don’t know what’s going to happen tomorrow, this stuff keeps changing," he said. "It can be challenging to plan for, but all we can do is control what we can, right now - and help as many customers as we can. The phones have been ringing."

The Trump administration announced a 25 percent tariff on imported cars, light trucks and auto parts.

Hilary Golston, FOX 2: "Overall, is this a smart move?"

"I don’t think so," said Dr. Jeff Rightmer.

Rightmer, a professor at Wayne State University, thinks the way to encourage investment and expansion is through an overall strategy.

"America has never had a manufacturing policy and that’s what they need to get to. How are we going to compete in the world," he said.

Hilary Golston, FOX 2: "What about those who would say maybe what we need instead is a return to true laissez-faire (leave it be philosophy) and that would be the best environment for automotive makers to compete in?"

"I don’t think they disintegrate, they’re stronger than they were in 2007, 2008," he said. "And I think that they can compete globally."

Former UAW spokesperson Brian Rothenberg doesn’t speak for the Union but has insights on President Shawn Fain’s decision to praise the Trump administration for tariffs.

"When you’re eating at Donald Trump’s dinner table, you've got to make sure you’re part of that discussion and not being served for dessert," he said. "Who knows what goes on behind closed doors at Solidarity House."

Hilary Golston, FOX 2: "UAW President Shawn Fain did say President Trump was all talk on labor issues, but this support for tariffs suggests some of that was politics?"

"What I’ve always said is, that if it is going to be good for your position, especially the worker's position with the UAW, where the more people who join in to do the right thing, the better it will be."

Dr. Rightmer says dealerships typically have 60 to 90 days of inventory and prices could rise, on average, between $5,000 and $12,000 per car, depending on the model.