Trump defended tariffs at a Michigan GM plant on Monday, making the case that his trade policy is pushing automakers to bring work back to the United States. Speaking in Milford, President Donald Trump said his tariff program is helping revive the auto industry and encouraging companies to move overseas operations home.
Trump framed the policy as a direct incentive for companies that want access to the American market. He said firms that build trucks or cars outside the United States must pay a fee to sell them here, while vehicles made in Michigan or elsewhere in the country would face no tariff. The White House also pointed to General Motors’ investment in US manufacturing, along with smaller investments from Ford, Stellantis and Detroit Diesel, as evidence that the approach is producing results.
The president’s visit came at a time when Michigan’s economy is under pressure. Job growth in the state has slowed sharply, and officials say Michigan now has one of the highest unemployment rates in the country. Bureau of Labor Statistics data show the state added just 500 jobs in the 12 months through June, a weak pace compared with Texas, which added 177,900 over the same stretch. State figures put Michigan’s unemployment rate at 5.1% in May, slightly higher than in April.
The auto industry sits at the center of the fight. Michigan depends heavily on Canada, and Canadian-linked manufacturing has been hit by a range of US tariffs. Those include a 25% levy on non-US parts in Canadian-assembled passenger vehicles, along with parts that fall outside the current North American trade pact, known as USMCA. Steel tariffs also ripple through the industry. If Washington follows through on a planned increase to 50% on some Canadian goods, including autos, in August, the pressure would rise further.
