Trump's 25% Tariff On Imported Vehicles Could Shatter Detroit's Auto Economy, Warns Business Leaders: 'It Will Hurt Hardworking Americans'

Two major Michigan business organizations have warned that President Donald Trump‘s planned 25% tariffs on imported vehicles and parts would severely damage the state’s auto-dependent economy and harm the working class.

What Happened: The Detroit Regional Chamber and MichAuto urged the administration on Monday in a letter to halt the tariffs set to take effect on Thursday, cautioning they would cause “significant price increases” for American consumers and “profound” pain in Michigan, where one in five jobs is automotive-related.

“The tariff policies proposed will increase prices, drive down consumer demand, and therefore, lower the profitability of our companies, directly impacting the hardworking Americans who assemble the iconic vehicles,” the letter stated.

The groups noted that Michigan houses over 1,000 automotive suppliers, many being small and medium-sized businesses with fragile balance sheets that depend on predictable supply chains. Price increases would “disproportionately” affect working-class and middle-class families, potentially causing consumers to keep older vehicles longer.

Why It Matters: Republican opposition to the tariffs is growing. Sen. Susan Collins (R-Maine) plans to support a resolution to terminate the national emergency declaration used to justify the tariffs, calling them “a huge mistake.” Sen. Rand Paul (R-Ky.) and Sen. Thom Tillis (R-N.C.) have expressed similar concerns.

The Alliance for Automotive Innovation, representing General Motors Co. GM, Ford Motor Co. F, Toyota Motor Corp. TM, Stellantis N.V. STLA, and others, has warned that the tariffs will increase vehicle costs for consumers.

Markets have shown volatility amid tariff uncertainty, with technology stocks like Tesla Inc. TSLA driving much of the recent quarterly decline in major indexes.

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