Trump tariffs blamed for lost Michigan union jobs as Sandisk cancels $5.5 billion Mundy Township semiconductor plant due to federal economic uncertainty.

Trump’s Tariffs Prompt Cancellation of Major Project

A significant setback hit Michigan workers as the Sandisk Corporation announced Wednesday that it is abandoning its planned $5.5 billion semiconductor manufacturing facility at the Mundy Township megasite in Genesee County. This cancellation is linked directly to economic uncertainty caused by President Trump’s aggressive and chaotic tariff policies.

The facility, known as Project Grit, would have generated thousands of good-paying union jobs, specifically benefiting Michigan’s construction and building trades workers. However, due to what the company described as “massive uncertainty” at the federal level, plans have been shelved indefinitely.

Michigan AFL-CIO Condemns Anti-Worker Policies

Ron Bieber, president of the Michigan AFL-CIO, sharply criticized President Trump’s economic strategies. “The Sandisk project in Mundy Township would’ve meant thousands of good union jobs—jobs for the hardworking men and women of the building trades,” Bieber stated. “But instead of creating jobs, Trump is playing chicken with trade while giving his billionaire buddies another tax cut.”

Bieber expressed frustration over the ongoing uncertainty caused by tariffs, emphasizing the readiness of Michigan workers. “Michigan workers are ready to build. We’ve got the skill, the grit, and the drive. Enough is enough—working people deserve better,” he added.

Senator Cherry Highlights Lost Opportunity With Trump Tariffs

Echoing the disappointment, Sen. John Cherry (D-Flint) noted that the project represented a once-in-a-generation chance to revitalize Genesee County’s manufacturing heritage and position Mid-Michigan as a global leader in semiconductor production.

“The decision to shelve Project Grit in Mundy Township is deeply disappointing for our community and the entire state,” Cherry said. He pointed directly to the Trump administration’s policies as creating an unstable economic environment, particularly highlighting chaotic tariff impositions as the core reason for Sandisk’s withdrawal.

“These policies have disrupted supply chains and created instability in the investment climate, making it difficult for even the most promising projects to move forward,” Cherry emphasized.

Commitment to Future Economic Growth

Despite this major setback, Cherry affirmed the state’s ongoing commitment to economic development in the region. “While this pause is a setback, it does not erase the progress we’ve made or the potential that still exists within the Advanced Manufacturing District of Genesee County,” he reassured. “We remain committed to attracting transformative investments, supporting skilled trades and technical careers, and ensuring Genesee County remains competitive.”

Local and state leaders pledge continued advocacy for stable, growth-oriented policies at the federal level, ensuring readiness should Sandisk or similar projects reconsider Michigan.

Broader Context of Tariff Impacts

This incident illustrates broader concerns about the economic ramifications of President Trump’s trade policies, which industry experts have repeatedly criticized for causing supply chain disruptions and investment instability. A Brookings Institution report underscores that tariffs often increase costs for manufacturers, ultimately discouraging substantial economic projects.

As Michigan grapples with this substantial economic blow, questions linger about the long-term impacts of ongoing trade disputes on local economies heavily reliant on manufacturing and trade.

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