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Monday, March 24, 2025

Trump's tariffs stir economic unease in Michigan and threaten US-Canada relations

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

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

Democratic U.S. Senator Elissa Slotkin, Detroit Regional Chamber President Sandy K. Baruah, and Colin Bird, Canada's consul general in Detroit, addressed concerns over President Donald Trump's tariffs at Wayne State University’s Industry Innovation Center. They highlighted the potential threat these tariffs pose to Michigan's economy and America's global standing.

The discussion focused on Trump's tariffs on Canadian aluminum and steel, which could expand to other imports with a 25% tariff in April. These measures could harm both Canada’s economy and Michigan's auto industry, heavily reliant on cross-border trade.

Baruah remarked that business leaders initially optimistic about Trump’s pro-business stance are now wary. "What we’re hearing is it’s beginning to look a lot like COVID," Baruah said, comparing the current uncertainty to pandemic disruptions.

Bird warned that the tariffs could "cripple" the auto industry given the significant daily trade across the Detroit-Windsor corridor. He argued that reshoring manufacturing would require extensive investment in infrastructure comparable to building “six Hoover Dams.”

Slotkin acknowledged tariffs' strategic role in national security but emphasized the importance of the U.S.-Canada relationship. She expressed concerns from local farmers and defense suppliers over rising costs due to these tariffs.

All three officials worried about escalating tensions with Canada, citing incidents of backlash against American products by Canadian consumers. Baruah stressed that weakening this long-standing trade partnership would hinder North America's ability to compete with China.

Bird pointed out that Trump's actions contradict commitments made under the USMCA, signed during his first term. He noted recent disregard for these agreements raises doubts about future trade negotiations' credibility.

"For the last two months, we’ve seen a systematic ignoring of those commitments imposed by the USMCA," Bird stated, highlighting potential isolation for America if such practices continue.

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