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Semiconductor Tariff Could Spur Further Price Hikes in Auto Industry, Analysts Warn

August 8, 2025

The Detroit News
August 7, 2025
Grant Schwab, Summer Ballentine, and Breana Noble

President Trump’s proposal for a 100% import tax on semiconductors raises hopes for Michigan’s manufacturing revival while simultaneously threatening to inflate costs for the state’s vital auto industry. As uncertainty looms with ongoing trade policy changes, local leaders stress the importance of stabilizing the economy and securing investments in semiconductor production to safeguard Michigan’s competitive edge.

“If that indeed is put in place, I think that opens the door to Michigan again for the simple fact that we design, engineer and make things here,” said Glenn Stevens, executive director of MichAuto, the automotive arm of the Detroit Regional Chamber. “The state, including the governor and bipartisan politicians and economic development, have all focused on that growth industry. We’re as poised as anybody to capitalize on that.”

Stevens of MichAuto, who on one hand was optimistic about potential semiconductor manufacturing in Michigan, also acknowledged the potential for a COVID-like disruption for the auto sector.”