As the Trump administration continues to implement across-the-board tariffs and threaten even more, Michigan businesses, manufacturers, and consumers are bracing for immediate economic disruptions and higher costs. The state’s economy faces mounting challenges across automotive, manufacturing, agriculture, and energy sectors.

Tariff Impact on Michigan: By the Numbers

Michigan’s economy is deeply integrated with global markets. In 2024, the state exported $61.6 billion in goods, ranking 7th nationally. These exports supported more than 1.1 million jobs across various sectors, including manufacturing, agriculture, and energy. Michigan producers exported $23.3 billion in goods to Canada in 2024, representing 38% of the state’s total exports.

Manufacturing: Manufacturing contributes $111.2 billion of value to Michigan’s economy, accounting for 16.5% of the state’s GDP and employing almost 600,000 workers. Tariffs on imported raw materials, such as steel and aluminum, can increase production costs for manufacturers, potentially reducing competitiveness and leading to decreased exports.

Automotive: Home to the “Big Three” automakers—General Motors, Ford, and Stellantis—Michigan is a global hub for car and auto production. The auto industry significantly contributes to the state’s exports and employment. However, 25 percent tariffs on imported parts and materials is already causing supply chain disruptions and increased costs for American automakers.

Agriculture & Food Processing: In 2024, Michigan’s agricultural exports reached a record $2.9 billion, with processed food products leading at $636 million. Key exports include soybeans, dairy products, and various processed foods. Tariffs on agricultural goods can lead to retaliatory measures from trade partners, adversely affecting farmers and food processors.

Energy & Clean Tech: Michigan is a leader in clean energy employment, ranking 6th nationally with 127,690 clean energy jobs as of 2024. The state is making significant strides in renewable energy, energy efficiency, and electric vehicle technologies. Tariffs on imported renewable energy components could hinder the growth of this sector by increasing project costs.