Capitol News

Michigan Governor Gretchen Whitmer delivered a keynote address at the Empire Club of Canada, focusing on the impact of current U.S. tariffs on Michigan's manufacturing sector and its auto industry. The event, held in partnership with AmCham Canada, included discussions about Michigan-Canada relations, trade, supply chains, jobs, climate issues, and cross-border partnerships.

During her speech, Whitmer criticized recent federal tariff policies and highlighted the importance of maintaining strong economic ties between Michigan and Canada. She noted that automakers and suppliers are at risk due to tariffs that also threaten the livelihoods of 1.2 million Michiganders employed in related industries. According to Whitmer, "Canada is our biggest auto trading partner, with car parts crossing the border an average of eight times." She pointed out that a 25% tariff has been imposed on foreign-made auto parts—including those from Canada—which could prompt companies to relocate production overseas.

Whitmer emphasized historical connections between Michigan and Canada through past governors and ongoing business collaborations. She stated that since she took office, Canadian businesses have launched 42 projects in Michigan creating over 7,800 jobs; conversely, Michigan businesses have started 33 projects in Canada generating more than 10,000 jobs.

The governor also addressed the broader effects of tariffs: "Now, we’re shooting ourselves in the foot with a chaotic national tariff policy. Over the past ten months, the federal administration has slapped tariffs on nearly every country, including yours." She cited declining consumer confidence among Americans and Canadians as a result.

Whitmer acknowledged concerns about unfair trade practices but argued against using broad tariffs on close partners like Canada: "I’ve been very clear that 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 you, our closest trading partners."

She warned about negative outcomes if North American cooperation weakens: "A decline in trade between the U.S., Mexico, and Canada would cause massive job losses, widespread supply chain disruptions, and shortages of fuel, parts, and produce." She added that only China stands to benefit from weakened regional ties.

Highlighting investments made since she took office—$40 billion by automakers and suppliers into Michigan—Whitmer called for continued collaboration: "Michigan remains the #1 U.S. state for auto production... But that's not enough. Michigan and Canada must collaborate to win."

Whitmer concluded her remarks by calling for bipartisan cooperation both domestically and internationally: "Let’s continue to be a model to the rest of the world on how to work together to get things done."