Detroit City Wire

The Detroit Regional Chamber celebrated the regional economy's resilience, characterized by low unemployment and a flourishing business environment. Yet, concerns emerged over potential negative impacts from President Donald Trump’s trade policies. Business and political leaders have raised alarms, suggesting that a trade war with Canada may significantly harm metro Detroit.

President Trump accused Canada of not effectively managing the flow of migrants and fentanyl into the U.S. Consequently, he implemented a 25% tariff on Canadian goods, including steel, aluminum, cars, and light trucks. Economic experts predicted a 700,000-vehicle reduction in U.S. auto sales for 2025. In response, Canada has imposed tariffs exceeding $30 billion on U.S. products, including a 25% tariff on specific goods, aligning with reciprocal actions on steel and aluminum.

Trump dubbed April 2 "Liberation Day," indicating plans for extensive tariffs to meet economic promises, although specifics remain undefined. Former Michigan governor and ex-ambassador to Canada, James Blanchard, highlighted historical and economic ties between the two nations, calling further tariffs potentially detrimental to businesses and consumers. He suggested that such measures might turn "Liberation Day" into "Inflation Day."

Blanchard emphasized the U.S.-Canada alliance, highlighting collaborative engagements in wars, organizations, and shared economic activities, refuting the notion of Canada as a security threat or adversary. He criticized President Trump’s rationale for the trade war, citing more migrant movement northward into Canada than southward to the U.S.

Statistics about irregular border crossings in Canada remain unreleased, yet Blanchard stressed Canada's significant role as an importer of American goods, particularly energy, as central to the U.S. trade deficit with Canada. He contested the argument of an energy crisis in the U.S., acknowledging Canada’s contribution.

Sandy K. Baruah, President and CEO of the Detroit Regional Chamber, warned that Trump’s trade policies particularly threaten the region, given its reliance on trade with Canada, involving 234,000 jobs. Baruah noted the substantial drop in CEO confidence nationwide, exacerbating risks to Michigan's economy.

A panel discussion followed including trade expert Aida Dismondy and Canadian Consul General Colin Bird. Bird emphasized the interconnected trade dynamics, urging regional collaboration. Dismondy expressed a need for unity amid federal policy shortcomings. They criticized the tariffs, stressing the importance of collaboration to counter unfavorable trade policies.

Baruah, alongside Glenn Stevens Jr., addressed a letter to federal officials urging restraint on tariffs related to United States–Mexico–Canada trade agreement compliance. Baruah questioned the long-term feasibility of current policies and their economic impact.

Bird commented on Canada’s shift towards other trade partners, driven by U.S. tariff threats. All panelists stressed the necessity of strengthened alliances, especially concerning threats from nations like Russia and China. Blanchard found solace in Trump’s ambassador nominee to Canada, Pete Hoekstra, recognizing his qualifications and connection with the President.