U.S. auto industry braces for 25% tariffs as Michigan faces major economic impact

Reuters

The U.S. auto industry is preparing for the impact of new trade policies, including 25 percent tariffs, set to take effect in April after a 30-day delay.

The new tariffs pose a significant challenge for the "big three" U.S. automakers—Ford, Stellantis, and General Motors. With many vehicles and auto parts crossing the U.S.-Canada-Mexico border multiple times, the tariffs could dramatically increase costs for cross-border traffic.

While the full impact of the tariffs may take time to unfold, experts warn the fallout could be felt across various industries in Michigan. A recent study by Fitch Ratings highlighted that Michigan's economy would likely be the hardest hit in the U.S., with 19 percent of its imports coming from Canada, Mexico, and China.

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