Tag Archive for Tariffs

A Bump In Michigan’s Economic Road Ahead

First Fallout From The Midterm Elections


The automobile assembly and automotive parts supplier sectors have been key to Michigan’s recovery from the Great Recession, and the increased tax revenues collected by Michigan’s many units of government. These sectors have been riding a wave of expansion – and hiring – in Michigan since President Trump announced his intentions to impose higher tariffs on European vehicles and parts on May 23rd.

Although these tariffs were proposed under national security statutes, Trump clearly intended to retaliate against the 10% tariff the EU imposes on all American-built vehicles and parts. The U.S. currently imposes 2.5% maximum tariffs on European cars, trucks, and parts. so European made vehicles and parts enjoy a 7.5% advantage over American vehicles and parts in direct trade.

It now appears that the Trump Administration is going to delay or abandon these proposed tariffs. A Bloomberg article posted last night reports on a meeting held at the White House Tuesday which put off automotive tariffs for the foreseeable future. A draft report on U.S. – European trade was sent back to the Commerce Department for reconsideration, a polite way of killing it. That report must be issued before any tariffs can take effect.

The November 6th election outcome just killed that.

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