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Whitmer and Ford warn of tariff's impact on Michigan
As a 25% tariff is levied on imports of steel and aluminum, Michigan Governor Gretchen Whitmer and leaders from Ford are warnig about how it could affect the state's economy.
LANSING, Mich. (FOX 2) - Michigan Governor Gretchen Whitmer has been very vocal about the looming trade war with our Canadian neighbors. This week, she flew to Washington to lobby against the tariffs – which she says will wreak havoc on the state's economy.
The U.S. president has defined his opening weeks in the White House with near daily drama regarding tariffs, saying that taxing imports might cause some economic pain but would eventually lead to more domestic manufacturing and greater respect for America.
His 25% tariff on steel is sending shock waves through the domestic auto industry – a major business in Michigan.
"25% tariffs on everything would slow down construction, shutter small businesses, lead to layoffs in the auto industry and cost Michigan families an extra $1200 a year at the store and the pump," Whitmer said during her state of the state.
Just this week she called the tariffs "capacious with no long-term goal."
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Whitmer flew to DC to lobby against the tariffs and was joined by representatives from Detroit's Big Three automakers.
Bill Ford from the Ford family talked with the president on the phone about tariffs and Ford CEO Jim Farley argues the policy will "blow a hole" in the U. S. auto industry.
But new state GOP party chair Jim Runestad argues the long term impact of tariffs will actually help Michigan.
"Yes its going to be a little messy early on," he concedes. "Nothing in economics is instantaneous – it all takes time. Economists would say you pull the lever and instantaneously it changes on that day. It's not how things work.
If there are eventual layoffs in the auto sector – including assembly lines and suppliers – the trickle down impact under the state capitol dome could be far reaching. Right now, lawmakers are writing the new state budget with the huge tariff cloud hanging over the talks.
Cutting state services to make up any lost revenue cannot be ruled out, unless, of course, the President is right that eventually his policies will kick-start the country's economy.
The Source: Tim Skubick used information from Whitmer's state of the State and an interview with GOP party chair Jim Runestead.