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Trump's tariffs threaten to sink the auto industry into Michigan

Trump's tariffs threaten to sink the auto industry into Michigan

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It is significant that Donald Trump gave his 100-day speech in Michigan, the state that is probably the hardest hit by the chaotic tariff rollout of the president.

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President Donald Trump was in his element this week and returned to my home state Michigan on April 29 to mark the 100th day in the office of his second term.

Trump organized his last large campaign rally the eve of the November elections in this battlefield state, so it made sense that he wanted to return to the place that helped him get back the white house.

“We are here in the core country of our nation tonight to celebrate the most successful first 100 days of every administration in the history of our country,” said Trump at the event. “We just started. You haven't seen anything yet.”

We have definitely seen a lot in the past 100 days. And much of it was good and what the Americans wanted.

Perhaps Trump should take his own words to heart and carry out a way as if we hadn't seen everything still.

And he should start with tariffs.

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Before visiting Michigan, Trump seemed to recognize the need to shorten his tariffs – at least for the auto industry.

He signed Executive Orders and offered temporary relief from import taxes to the car manufacturers. Trump originally ordered 25% tariffs for all imported vehicles and auto parts.

It is significant that he gave his 100-day speech in Michigan, the state that is probably the hardest hit by the chaotic tariff tariff rollout of the President. The auto industry is king here and suffers heavy blows if Trump does not scrap these plans.

The day after his stop in Michigan, the country got some difficult news. The economy had the worst quarter in three years because the gross domestic product shrank in the first months of the year – which was directly connected to how companies reacted to the risk of tariffs.

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This is not the kind of news that Trump – still his followers – want to see. And while he still wants to blame his predecessor, President Joe Biden, for the lackluster results, Trump must have economic reality sooner than later.

Before the introduction of the original tariffs, the Anderson Economic Group, based in Michigan, analyzed its impact on the price of cars and the industry. The US consumer effect in the first year was estimated at $ 30 billion.

And AEG found that the tariffs are probably between 2,500 and 20,000 US dollars at the price of each new car, depending on the vehicle and where it is manufactured. This is a considerable success for consumers, and there will also be considerable consequences for the industry, including loss of work.

Even with the short -term relief, prices and the industry are still injured.

Trump was chosen to improve the economy. He has to deliver.

Trump is absolutely right that the politics of the Biden government has hindered the economy. However, his obsession of tariffs contradicts the conservative free market book and for good reason for a good reason.

Customs are taxes on imported goods that are transferred to the consumer (you and me). And although Trump seems to believe that he can use tariffs to negotiate trade agreements and bring back more manufacturing jobs to the USA, including Michigan,, I do not think that most Americans are willing to accept the costs of everyday goods.

This applies in particular to inflation controlled for years.

The confusing tariff rules and the fact that they constantly change prove that this is not an effective way to “increase” the economy. Instead, Trump should concentrate on working with the congress in order to adopt tax cuts and collect regulations, as he promised.

The most important thing, as I mentioned, is to exceed Trump's one -sided tariffs about the authority granted by the congress and the constitution, and complaints – including a new one that was submitted by the Pacific Legal Foundation, can reset against this.

I think Trump wants the best for America. But he is very wrong when it comes to tariffs.

Ingrid Jacques is a columnist at USA today. Contact you at ijacques@usatoday.com or at X: @Ingrid_jacques

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