Mid-Michigan NOW
Feb. 3, 2025
Courtney Bennett
The potential imposition of tariffs on countries such as Canada, China, and Mexico could significantly impact the automotive industry, experts say.
Chris Douglas, a professor of economics at the University of Michigan-Flint, explained that tariffs present a “double whammy” for Detroit’s Big Three automakers. “They pay a higher price for parts, and export markets get closed up,” Douglas said.
Glenn Stevens Jr., executive director of MichAuto with the Detroit Regional Chamber, highlighted the potential cost implications for consumers. “I’ve heard anything from $3,000 to $6,000 per vehicle, depending on the price point of the vehicle,” Stevens said. “Those are big numbers, and that’s something that will affect demand.”
Stevens warned that disruptions in the supply chain could lead to job cuts if demand decreases. “The longer it goes, and hopefully that won’t happen, the more the impact,” he said.
The automotive industry, a cornerstone of Michigan’s economy, could face challenges reminiscent of those experienced during the COVID-19 pandemic, when supply chains were disrupted, and parts became scarce.
Currently, a pause on tariffs with Mexico and Canada is in effect for a month, but it remains uncertain if a similar pause will occur with China.