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Saturday, March 29, 2025

Michigan-Canada partnership faces challenges amid tariff uncertainty

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Sandy K. Baruah President and Chief Executive Officer at Detroit Regional Chamber | LinkedIn

Sandy K. Baruah President and Chief Executive Officer at Detroit Regional Chamber | LinkedIn

On March 17, 2025, a discussion was held to examine the economic relationship between Michigan and Canada. The panel included Senator Elissa Slotkin (D-MI), Canadian Consul General in Detroit Colin Bird, and Detroit Regional Chamber President Sandy K. Baruah. The event was moderated by WJR’s Guy Gordon.

The conversation focused on the benefits of cross-border trade and strategic trade policies. Baruah noted that business leaders initially welcomed the Trump administration's approach but are now concerned about unpredictability affecting their planning processes. “Even those business leaders who didn’t necessarily vote for President [Donald] Trump were frankly excited or at least looking forward to a less regulatory-intensive environment,” Baruah said. He added that the current situation is reminiscent of COVID-19 due to unexpected uncertainties.

Slotkin highlighted concerns from national security and agricultural sectors, emphasizing the impact of trade relations with China, Canada, and Mexico. She pointed out that previous market share losses in agriculture could become permanent if not addressed.

Bird expressed worries over potential Canadian tariffs affecting Michigan's auto sector due to integrated manufacturing operations across borders. “People don’t realize the size of this … when you got 7,000 trucks every day crossing at [the Detroit-Windsor border], just how important that is,” Bird stated.

Slotkin observed lobbying efforts from industries seeking exceptions under current conditions, saying it leads to an unfair system favoring larger entities: “The first time Trump was in the White House, there was a process...the biggest, loudest people are going to get what they want.”

The panel also discussed resource deficits and employment opportunities between Michigan and Canada. Bird noted existing U.S. surpluses in manufacturing offset by energy imports from Canada: “Seventy percent of the feedstock into your [Midwest] refineries comes from Canada.”

Baruah concluded by stressing collaboration with allies against China's economic influence: “It’s really hard to do this alone...I’ve yet to see that.”