Gov. Gretchen Whitmer warns tariffs could devastate Michigan’s auto industry and strengthen China’s market position while urging closer U.S.-Canada cooperation.

LANSING, Mich. — Governor Gretchen Whitmer on Tuesday used a keynote speech in Toronto to sharply criticize federal tariff policy, warning that escalating trade barriers between the United States and Canada threaten Michigan’s economic lifeline — its auto industry.

Speaking before the Empire Club of Canada and AmCham Canada, Whitmer said the policies championed by Washington Republicans under President Donald Trump are “shooting ourselves in the foot” and risk ceding ground to China in the global electric vehicle race.

Tariffs Threaten Michigan’s Auto Manufacturing Base and Cross-Border Trade

Michigan’s economy is deeply tied to Canada, its largest trading partner. Auto parts cross the Detroit-Windsor border an average of eight times before final assembly, according to the governor. A 25 percent tariff imposed on Canadian-made components has disrupted this flow, she said, increasing costs for suppliers and threatening more than 1.2 million jobs in Michigan communities linked to auto production.

Whitmer cited examples of auto companies weighing overseas production to avoid layered tariffs. “Businesses are considering moving operations entirely overseas to pay one tariff on one product,” she said.

Trade data supports her warning. U.S. duties on automotive goods entering the country totaled $17.4 billion this summer, a level not seen in two decades, according to U.S. Census Bureau figures.

Michigan and Canada: Shared History, Shared Future

Whitmer reminded the audience that ties between Michigan and Canada extend beyond commerce. Former governors John Swainson and Jennifer Granholm were born in Canada, while Jim Blanchard served as U.S. ambassador to Ottawa. Former governor George Romney maintained a cottage in Ontario.

“Michigan and Canada are cousins,” she told the audience. “If anyone tries to mess with our family, you can bet we’ll have your back.”

Since Whitmer took office, Canadian companies have announced 42 projects in Michigan, creating more than 7,800 jobs, while Michigan firms have launched 33 ventures in Canada, creating 10,000 jobs, according to her office.

Trade Blockades, Supply Chain Disruptions, and Tariff Fallout

The governor recalled the 2022 blockade of the Ambassador Bridge, which halted auto and agricultural trade and cost workers an estimated $144 million in lost wages. She warned tariffs could institutionalize that kind of disruption, straining the busiest border crossing in North America.

“We’re already seeing the impacts of soaring costs,” Whitmer said. “Auto companies in Canada and Michigan are stockpiling parts and laying off workers. Bonus checks are shrinking by thousands. The price of a new car could rise by $2,500.”

China Positioned as Beneficiary of U.S. Tariff Strategy

Whitmer emphasized that the real beneficiary of tariff escalation is China, which has aggressively subsidized its EV and battery industries. She pointed to Europe, where Chinese EVs have gained significant market share, and warned that North America risks repeating that trajectory.

“If we let cheap Chinese EVs enter the North American market or fail to control supply chains for critical minerals, it’s all at risk,” she said.

China’s automakers, supported by state subsidies, are already exporting record volumes of EVs to Europe, where market share for Chinese brands tripled between 2020 and 2024, according to the International Energy Agency.

Michigan’s Investments and a Call for Collaboration

Whitmer touted $40 billion in combined automaker and supplier investments in Michigan since 2019, alongside $50 billion in Canada since 2020, as proof of the region’s strength. Michigan remains the nation’s top state for auto production, EV and battery development, and mobility research.

Still, she argued that without U.S.-Canada unity, those gains could vanish. “When we say no to Canada, we say yes to China,” Whitmer said.

Broader Political Implications

The governor’s remarks also touched on her bipartisan record in Lansing, including signing more than 1,500 bills since 2019, and underscored her belief in cross-border collaboration. Next year, Michigan and Canada will dedicate the long-delayed Gordie Howe International Bridge, which Whitmer called “a towering symbol of our successful partnership.”

Related Context and Ongoing Debate

The tariff debate comes as the U.S.-Mexico-Canada Agreement (USMCA) approaches its fifth year in force. While the Trump administration hailed it as “the best agreement we’ve ever made,” critics warn that escalating tariffs could undermine its benefits.

For Michigan’s auto-dependent economy, the stakes are high. Whitmer closed by urging Ottawa and Washington to maintain open channels: “We must keep talking and keep showing up for each other. We will get through this together.”

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