(NewsNation) — President Donald Trump aggressively campaigned in Michigan, promising to save the auto industry and bring jobs to the state, but there are mixed opinions about his tariff strategy.
The sweeping tariffs have been paused for 90 days for all countries except China, which is now facing a tariff of over 100%.
The initial announcement, however, has already led auto companies to make changes. Stellantis, one of the big three automakers in the U.S., already temporarily laid off around 900 workers at five U.S. facilities.
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That includes plants in Warren and Sterling Heights, Michigan, and forecasts from the University of Michigan suggest even more pain could be coming.
The school’s Department of Economics predicted more than 2,000 jobs will be lost over the coming year, the state will produce 26,000 fewer cars and the big three will lose about 1% market share each year due to tariffs alone.
While economists have warned that tariffs are likely to cause a recession and raise costs for consumers, Trump’s most adamant supporters are still standing behind the strategy.
Douglas King has worked at Stellantis for 30 years and told NewsNation his coworkers are willing to go through tough times in hopes of bringing jobs back to the U.S.
“My coworkers know something has to be done to stop the bleeding. Our jobs are leaving. We’re watching them go overseas. We can’t compete with low labor costs,” he said. “I have to believe that what President Trump’s doing is going to help the American economy. I think we have to be patient, not ready to give up and jump ship just yet.”
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Many people told NewsNation that they think the tariffs are part of Trump’s way of doing business, playing hardball to bring people to the negotiating table and get his way. They think it will work, and the tariff turmoil will be over soon.
Auto industry experts, on the other hand, have voiced concerns about the way tariffs have been rolled out and the treatment of America’s neighbors and close trading partners Canada and Mexico.
The auto industry is part of a complex and interconnected system where cars and parts are shipped back and forth during the production process before they even make it to the showroom to be sold.
That’s why the Detroit Chamber of Commerce wrote a letter to the Trump administration asking it to use caution when implementing tariffs. They wrote, “A century of supply chains and relationships cannot be undone without tremendous economic harm to companies and workers, if not done strategically and thoughtfully.”
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Glenn Stevens helped write that letter. He said everyone is on board with bringing jobs to America but doesn’t want it to come at a cost to the American auto industry’s key partners.
“We think that there can be more U.S. manufacturing, but we also think that we can keep this trade block together between Mexico, Canada and the U.S. so it is a globally competitive block,” he said. “The competition is not Canada and Mexico. The competition is global, particularly the Chinese automotive industry.”
The interconnectedness of the auto industry is key when it comes to tariffs, as every single car is made up of around 30,000 parts, from the smallest screws to the biggest bumpers. All those parts come from around the world, so tariffs have a big impact on the industry.
