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What Canada’s Retaliatory Tariffs Mean for Michigan
September 16, 2026
Crain’s Detroit Business
Sept. 8, 2026
Anna Fifelski and Dustin Walsh
The latest iteration of the U.S.-Canada trade dispute debuted on Tuesday at 12:01 a.m., when Canada imposed new tariffs of 15% to 50% on hundreds of products it imports from the U.S.
The tariffs — applied to products from dairy to steel to construction materials to sewing supplies — are set to act as a slow squeeze on American manufacturers and consumers if the disputes continue.
Steel, parts, and equipment are high on Canada’s list of retaliatory tariffs, and are set to increase that impact figure — though exactly how much is still up in the air, Glenn Stevens Jr., Executive Director of MichAuto and Vice President of Automotive and Mobility Initiatives at the Detroit Regional Chamber, told Crain’s.
“For example, in the automotive industry, we’ve been doing business together in a very intertwined and interconnected supply chain for almost 125 years,” Stevens said of the U.S.-Canadian trade relationship. “And so we don’t just trade; we literally build things together.”
Automotive components cross the border throughout their assembly process: vehicle engines built in Flint cross the border to the Oshawa, Ontario assembly plant for General Motors, and engines built in Ontario return to Michigan to be installed in Ford Mustangs assembled in Michigan, Stevens said.
Tariffs on materials and components like steel and aluminum will increase input costs in Canada. Tariffs as a whole increase friction and uncertainty in the supply chain, Stevens said.
“Every tariff placed between our two countries makes us less globally competitive together and provides opportunity for China to get stronger,” Stevens said.
Why is Michigan Impacted More Than Other States?
Michigan’s deep economic ties with Canada make the state more susceptible than others to the wide-reaching tariffs across industries. Michigan and Ontario have been doing business for centuries, long before either country was established, Stevens said.
Thousands of components constantly move back and forth, meaning tariffs on steel, aluminum, and manufactured goods don’t just hit imports or exports in isolation, but instead disrupt a single shared production system. Because of the sheer volume of this cross‑border manufacturing and the “close integrated supply chains” between Michigan and Ontario, any new trade barrier is amplified in the state.