MILFORD, Mich. -- President Donald Trump asserted that American car companies are experiencing unprecedented success due to his tariffs during a rally at General Motors in Michigan. "All because of Trump,” he stated, while touring vehicles and predicting positive outcomes from tariffs before autographing a Corvette.
However, economic realities for businesses in Michigan and across the nation present a different picture. Tariffs have incurred billions of dollars in costs for businesses and contributed to inflation, despite Trump's assurances that his business acumen would mitigate such issues. Many Americans attribute rising prices to tariffs and increased gasoline costs, which have impacted consumer confidence and Trump's approval ratings.
Michigan, a crucial battleground state that Trump won in 2016 and 2024 after it flipped to Democrat Joe Biden in 2020, highlights the divergence between the president's rhetoric and the economic impact of his policies. During the rally in Milford, attendees expressed admiration for the president, yet some ardent supporters, like Lisa Scherer, a 64-year-old former business owner and union steward, admitted that high gas prices are burdensome and affordability is a significant challenge. "But I’m just hoping, if we hang in there,” she said, reaffirming her overall support for the president.
While the Supreme Court has invalidated some tariffs, the administration has implemented new import taxes and invoked the Tariff Act of 1930 to impose significant tariffs on imports from Canada, citing discriminatory practices. This policy shift contrasts with decades of efforts, including the United States-Mexico-Canada Agreement from Trump's first term, which aimed to reduce bilateral trade barriers between the U.S. and Canada, a nation with heavily integrated supply chains with Michigan.
Automakers, including GM, have stated that tariffs increase production costs. The Trump administration had previously offered a reprieve from auto-part tariffs, extending a temporary rebate until 2030. Veteran Michigan pollster Bernie Porn expressed skepticism regarding the president's claims, suggesting that tariffs are exacerbating voters' concerns about inflation and affordability. "When I was listening to him, I said, ‘What planet are you on?’" Porn remarked, also noting national Republican concerns about voter turnout in the upcoming elections.
Conversely, some, like Joe Miskovich, a 57-year-old aerospace business owner from Fenton, Michigan, believe in the long-term benefits of tariffs. "Yes, granted, there might be a little higher increase in price. But the long-term effect is going to be absolutely positive to the nation,” he said, advocating for a broader perspective on the economic impact.
Trump has actively endorsed candidates in key midterm primary races, including Congressman John James in Michigan's Republican gubernatorial primary. Former Rep. Mike Rogers, seeking to return to the Senate, also spoke at the rally, emphasizing the need for a senator who supports Trump's agenda.
Some attendees, like Scherer, who traveled from Ohio, voiced concerns that the president may have overlooked supporters who are on fixed incomes. "I’m brutally honest, like Trump is, aren’t I? He’s forgot about the people on a fixed income,” she said, noting her Social Security benefits. "But I look at it like, I guess, No pain, no gain.”
Michigan House Speaker Matt Hall praised Trump's tariffs and his role in securing a new fighter jet mission for Selfridge Air National Guard Base, framing it as "putting Michigan first."
While some auto companies have pledged increased U.S. production, such as GM's $4 billion investment to shift production from Mexico starting next year, and similar plans from Ford and Stellantis, the immediate economic benefits are not yet widespread. Toyota also announced a significant investment to relocate production to Texas over several years. Meanwhile, Michigan has seen only modest job growth in the auto sector during Trump's second term, with auto parts manufacturing jobs declining by approximately 4,000 statewide compared to the previous year. The state has lost 8,300 manufacturing jobs since Trump announced his tariffs, according to the Bureau of Labor Statistics.
Despite these economic concerns, the rally itself was characterized by strong supporter enthusiasm. Attendees like Rose Stroud, 75, expressed unwavering loyalty, believing Trump prioritizes people's needs. Others, such as Roy Parks, a self-employed handyman, photographer, and videographer, suggested that the president's strategies may not be immediately apparent but will yield positive long-term results, likening tariffs to a necessary short-term pain for long-term gain.