By Governor Gretchen Whitmer, Guest Columnist
Michigan knows a thing or two about making things. Our talented workers and growing businesses build cars and trucks, manufacture batteries and health care equipment, grow food, and ship products around the globe. We’ve also built a strong economic partnership with Canada. That connection is a strength for Michigan, but it also means we feel the impact when Washington gets things wrong. Michigan families and businesses are already paying more for gas, groceries, and the essentials due to tariffs and the Iran War. This new trade war with Canada will jack up those costs even higher.
American cars contain tens of thousands of parts, and many parts cross the border multiple times. When the government adds tariffs along the way, the cost does not disappear – it gets absorbed by businesses, workers, and ultimately, customers. Due to previous tariffs, U.S. auto exports to Canada are down 23 percent over the last year. Car prices are up by thousands of dollars. But things could get even worse.
Last month, fifty percent tariffs on Canada went into effect after trade talks broke down. The administration is threatening even more by the end of the year, and Canada announced reciprocal “dollar-for-dollar” tariffs that cover $1.5 billion of Michigan exports, including auto parts. It’s hard to overstate how disastrous this will be for Michigan. It will lead to stopped assembly lines, higher prices, and fewer jobs. Michigan already shoulders America’s highest tariff burden at over $5,600 per household since January 2025.
That’s why lowering costs for Michiganders is my top priority. We completely rolled back the Retirement Tax, giving half a million households an average of more than $1,000 and more room in their budgets. We expanded the Working Families Tax Credit, putting an average of nearly $3,900 back into the pockets of working families. We’ve raised the minimum wage, expanded free Pre-K and free school meals, and made historic investments in affordable housing.
These efforts are the kinds of things that make a real difference when you’re sitting at the kitchen table trying to make the numbers work. I can’t control every decision that’s made in Washington, but we can keep doing our part here in Michigan to lower costs. I’ll keep fighting to lower costs, put more money back in your pockets, and create good-paying jobs here at home.