
AP Photo/Jose Juarez
Gov. Gretchen Whitmer is renewing her pledge for bipartisanship—and warning against tariffs that could threaten the future of Michigan’s automotive industry.
DETROIT—Standing before a crowd at the Detroit Auto Show this week, Gov. Gretchen Whitmer didn’t mince words about Michigan’s stake in the future of the automotive industry.
“Michigan is the auto industry, and the auto industry is Michigan,” Whitmer said Wednesday during her “Road Ahead Address” and what marked her first big speech since President-elect Donald Trump was elected. “Our fates are linked. So, let’s pave the road ahead, together.”
Whitmer’s speech wasn’t just a nod to Michigan’s automotive dominance during one of the largest annual automotive events in the world. It also served as a renewed clear call for bipartisan cooperation—a necessity as Trump prepares to begin his second term next week.
Despite spending much of last year’s election season campaigning for Vice President Kamala Harris, Whitmer this week signaled her clear intent to work with Trump this year, saying she’ll stand up for Michigan workers and fight for policies that protect the state’s automotive economy.
“You see, I want to get things done—things that make Michiganders’ lives better. And I’ll work with anyone who’s serious about solving problems,” Whitmer said, mentioning Trump by name alongside other Republican leaders who took majority control of the state House this year.
“Michiganders elected both me and Donald Trump twice, just two years apart. We all swore an oath to the people we serve. And the people expect us to find common ground, especially when it comes to lowering costs, creating good-paying manufacturing jobs, boosting research and innovation, and cutting red tape,” Whitmer told the crowd on Wednesday. “Now, I don’t want to pretend like we’ll always agree, but I will always seek collaboration first. I won’t go looking for fights, but I won’t back down from them either. I’m not here to play games. I’ve got a job to do.”
What’s at Stake for Michigan?
Trump’s proposed tariffs on auto parts and materials imported from key US trading partners like Canada and Mexico have many Michiganders worried about the state’s economic future.
Whitmer cautioned that new taxes on imported goods could backfire by driving up costs for consumers and manufacturers alike—especially in the auto industry, where vehicles can rely on thousands of individual parts from both domestic and international suppliers.
Consider this: A car made in Michigan may rely on components that come from across the Canadian border. Any new tariffs would be paid by the companies importing those items — in this case, companies like Ford or GM — but will ultimately be passed onto consumers, driving up the final price of the product.
In some cases, vehicle production involves multiple border crossings. For example, a transmission part might be manufactured in Ontario, assembled in Michigan, and then shipped back over to Canada for further processing.
If Canada responds to Trump with tariffs of their own, it could hypothetically lead to companies having to pay multiple tariffs as part of the production process, with each crossing adding additional costs, driving up the final price of the vehicle.
“Every time a Michigan auto part crosses over the border and gets taxed, those costs will be passed on to you at the dealership,” Whitmer explained. “Sometimes, it happens a couple times throughout production. That means you’ll pay more to buy a Silverado, fix the engine in your Mustang, or replace the fender on your Jeep …. The only winner in this equation is China.”
“I’m not opposed to tariffs outright, but we can’t treat them like a one-size-fits-all solution. And we certainly shouldn’t use them to punish our closest trading partners,” Whitmer added. “Doing so hurts all of us, damaging supply chains, slowing production lines, and cutting jobs.”
Trump, for his part, has argued that new tariffs could be used as leverage to help incentivize more companies to bring their manufacturing operations back to American soil.
Michigan’s Automotive Edge—and its Competition
Since Whitmer took office in 2019, she said the state has secured more than $40 billion in automotive and manufacturing investments—fueled largely by incentives that were included in Democratic-led legislation like the Inflation Reduction Act and the Bipartisan Infrastructure Law.
Automakers and suppliers in Michigan now employ nearly 1.2 million people—one-fifth of the state’s workforce. And with an average salary of about $72,000, those automotive manufacturing jobs pay higher wages than the state’s median household income, Whitmer said.
Yet during her speech, she cautioned that Michigan’s economic success is not guaranteed.
Southern states like Georgia, Tennessee, and South Carolina have been aggressively courting auto manufacturers with financial incentives. Whitmer argued that Michigan must act with equal urgency by modernizing its economic development tools, including a new “Make it in Michigan” job fund to attract cutting-edge automotive and tech companies.
“It’s no longer enough to just have parts makers and assembly plants. To compete in the 21st century, we need battery factories, software companies, chip fabs, and startups, too. … Owning this ecosystem top-to-bottom is critical” Whitmer said. “To build an auto ecosystem, we cannot get complacent. We must update our economic toolkit to match our changing reality.”
As the home of some of the largest automotive manufacturers and parts suppliers in the US, Trump’s plans for tariffs could jeopardize that vision for expansion in Michigan, Whitmer said.
Many economists agree that taxing imported goods can drive up costs for consumers and manufacturers alike. The United Auto Workers union has also warned that such policies would threaten to disrupt supply chains, drive up vehicle costs, and cripple the state’s biggest industry.
Still, Whitmer made clear that Michigan is ready to face the challenges ahead:
“For America to win, we must recognize that all of us are on the same team,” Whitmer said. “Both our state and national economy depend on our ability to work together.”
READ MORE: SEIU and AFL-CIO join forces ahead of expected Trump anti-worker agenda
Don’t miss Michigan’s biggest stories—follow The ‘Gander on X.
Support Our Cause
Thank you for taking the time to read our work. Before you go, we hope you'll consider supporting our values-driven journalism, which has always strived to make clear what's really at stake for Michiganders and our future.
Since day one, our goal here at The 'Gander has always been to empower people across the state with fact-based news and information. We believe that when people are armed with knowledge about what's happening in their local, state, and federal governments—including who is working on their behalf and who is actively trying to block efforts aimed at improving the daily lives of Michigan families—they will be inspired to become civically engaged.


Planning Commission takes step to prep land for massive new manufacturing project near Flint
The Mundy Township Planning Commission is clearing the way for what could become one of Michigan’s largest manufacturing operations—with reports...

Fain rallies with Stellantis UAW members at Trenton plant ahead of strike authorization vote
BY KEN COLEMAN, MICHIGAN ADVANCE MICHIGAN—Union members and elected officials rallied on Wednesday against Stellantis arguing that the automaker...

Pro-union group requests investigation of Webasto for alleged anti-union efforts at Detroit plant
BY JON KING, MICHIGAN ADVANCE MICHIGAN—A German-based auto parts manufacturer is facing another complaint about alleged union busting activities at...

Report: Federal investments charge up 18,000 new EV manufacturing jobs for Michiganders
A recent analysis shows that federal policies and legislation have dramatically expanded investments in electric vehicle and EV battery...

Trump-appointed judge strikes down FTC ban on noncompete agreements
FTC spokesperson Victoria Graham said that the decision “does not prevent the FTC from addressing noncompetes through case-by-case enforcement...