Tariff Talk: How Michigan Can Remain the Global Epicenter for Automotive and Mobility

On June 9, Bernard Swiecki, Vice President of Mobility and Research at the Detroit Regional Partnership, moderated a discussion featuring Glenn Stevens Jr., Executive Director of MichAuto at the Detroit Regional Chamber, and Edgar Faler, Managing Director of Financial Analytics and Industry Strategy at the Center for Automotive Research to discuss how tariffs in the automotive industry are reshaping the landscape.

Amid the current uncertainty facing automakers, suppliers, and dealers, many are struggling to make effective decisions in this challenging environment. For perspective, when comparing May 2024 to May 2025, “Maritime import volume, not USMCA, but the ports parts and accessories shipments are down 15% and vehicle shipments are down 72%,” noted Swiecki. This highlights that the automotive industry is facing challenges and reality that there is no one-size-fits-all approach, as Stevens pointed out. “The situation largely depends on what you do and where you make it,” he said.

Additionally, Faler emphasized that “there is no such thing as a domestic vehicle made of 100% domestic parts.”

In discussions with investors, the MichAuto team has identified three key barriers that hinder the industry’s ability to maintain its leadership position: paralyzing over-analysis, an increasing reliance on data for decision-making, and rising costs. “Why would anyone invest millions to shift an assembly line from Mexico to the U.S. under such unstable conditions?” asked Stevens.

For Michigan to remain globally competitive, companies must not fall into a state of inaction while the industry continues to advance. Faler warned that hesitance could result in missed opportunities to innovate and manufacture the next generation of vehicles here in Michigan.

“We have to evolve. The problem for companies is that they are trying to invest in the future while paralyzed by today,” Stevens said. When Stevens visited sub-assembly companies, he noticed that their production lines were often sitting idle for programs that would never result in a vehicle, as those programs had been canceled or delayed. We need to keep the operations running smoothly and determine the future direction of these lines rather than choosing between options. According to Faler, Michigan has designed a method for recovering precious metals by utilizing magnets and altering the chemistry of electric vehicle components, which are typically processed elsewhere.

As it relates to the evolution of EVs, “We were rushing with the EV workforce, and now it’s slowed down. What we thought we knew about EV jobs is not what it is.”

Swiecki said, “When it comes to mobility, electrification, and automation, this means that automotive and the technologies we’ve gotten good at here in the Detroit Region now apply to other mobility sectors.” These sectors can integrate into the automotive industry, thereby opening up new markets for companies. Many of the technologies developed for automotive applications are also relevant to power generation and storage within the larger energy grid. Essentially, this development positions us as leaders in two of the most important sectors of the economy.

According to Stevens, when considering the future of USMCA, some of the goals include addressing illegal drugs and immigration, increasing government revenue, and relocating more manufacturing back onshore. Ideally, we would like to see a new and improved trade agreement; however, “there is also the possibility of establishing separate trade agreements with Mexico and Canada.”

It’s essential to recognize that labor conditions in and the influence of China on Canada and Mexico are markedly different. Our dealership and supply chain networks are not yet prepared to allow companies like BYD to cross the border freely. Most people believe that a 10% tariff will be imposed across the board for a range of countries. This approach could help us safeguard our interests while fostering a more balanced trade environment.