Trump Tariff Executive Orders
In early 2025, the Trump administration launched the most aggressive tariff regime in U.S. history since the Smoot-Hawley Act of 1930. A universal 10% tariff on all imports took effect in April 2025, with higher rates on specific countries. China faces tariffs of 145% on most goods. Canada and Mexico were hit with 25% tariffs in February — partially paused for USMCA-compliant goods but otherwise in effect — targeting the two largest U.S. trading partners.
The tariffs were enacted through executive order, primarily under the International Emergency Economic Powers Act (IEEPA) — a legal authority previously used for sanctions, not broad trade policy. Courts have challenged this use of IEEPA, and the legal battles over presidential tariff authority are ongoing in federal courts as of early 2026.
Impact on Michigan's Economy
- Auto industry: Michigan's signature industry is deeply integrated with Canada and Mexico through the USMCA supply chain. A typical vehicle crosses the U.S.-Canada or U.S.-Mexico border six to eight times during manufacturing. Tariffs on Canadian and Mexican auto parts add $1,000–$5,000 to the cost of a vehicle built in the U.S.
- Steel and aluminum: Michigan manufacturers rely on imported steel and aluminum. A 25% tariff on these inputs raises costs for everyone from small fabricators to Ford and GM.
- Agricultural exports: Michigan's farm exports — cherries, blueberries, soybeans — face retaliatory tariffs from trading partners. The European Union and Canada have targeted agricultural products from states that voted Republican, including Michigan.
- Consumer prices: Economists estimate the universal 10% tariff costs the average American household $1,500–$2,500 per year through higher prices on imported goods and domestically produced goods that compete with imports.
Source: Federal Reserve Bank of Chicago — Michigan Tariff Exposure Analysis
The Two Sides
- Decades of "free trade" hollowed out American manufacturing — tariffs are necessary to rebuild industrial capacity
- Trading partners have maintained their own barriers while the U.S. kept markets open; tariffs force reciprocal negotiations
- National security requires domestic production of critical goods — semiconductors, pharmaceuticals, steel — that cannot be offshored
- Short-term pain from higher prices is outweighed by long-term gains from reshored jobs and supply chain resilience
- Tariffs function as a tax on American consumers and businesses, not on foreign governments
- Retaliation targets U.S. agricultural and manufactured exports, costing jobs in sectors that tariffs weren't meant to protect
- Complex global supply chains cannot be reshored quickly or cheaply — tariffs raise costs without proportionate job gains
- Trading partners are diversifying away from U.S. suppliers, creating long-term market share losses that outlast any tariff regime
What to Watch
- Court rulings on IEEPA authority: Federal circuit courts are reviewing whether the IEEPA grants the president authority to impose universal tariffs. A ruling limiting this authority could quickly unwind much of the tariff regime.
- Trade negotiations: The administration has indicated willingness to negotiate bilateral trade deals with countries that accept reduced tariffs. Watch for framework agreements with the EU, Japan, and India.
- Michigan auto sector layoffs: Ford, GM, and Stellantis production decisions in Michigan will reflect tariff cost impacts. Track UAW contract status and plant announcements through industry reporting.