Windsor leaders laud Michigan governor’s private call on Trump to scrap auto tariffs

Article content Windsor political and labour leaders are applauding Michigan Gov. Gretchen Whitmer for urging U.S. President Donald Trump in a private White House meeting to scrap trade tariffs threatening her state’s and the region’s vital automotive and manufacturing sectors.

Article content With several major U.S. automakers recently already reporting significant financial losses and blaming the Trump administration’s tariffs, Windsor Mayor Drew Dilkens said it is clear that levies on Canada ultimately harm Americans as well.

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Article content “It’s a direct tax to American consumers and this is already starting to play out negatively in the United States,” Dilkens told the Star.

Article content “Everyone is seeing it. Good on Governor Whitmer for getting to Washington to have that discussion with President Trump.

Article content “We’ve always said the tariff on Canada makes no sense.”

Article content Whitmer met privately in the Oval Office with Trump last week to make a case for the highly interconnected American and Canadian supply chains to be exempted from the tariffs that are badly hurting important sectors of her state’s economy.

Article content Just securing the meeting on August 5 with the Republican president was an achievement for a Democratic Party leader viewed as a potential contender for her party’s White House nomination in 2028.

Article content “I think what Governor Whitmer is saying to the president is, ‘If you continue on the course that you’re on, there is going to be significant pain in the auto industry and manufacturing, not only in the state of Michigan, but across the U.S. Midwest,” said Dilkens.

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Article content “You can only play this game of chicken for so long before you finally have to come to your senses and say that this isn’t working and this will not work, and we’ve told you that from the very beginning.”

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Article content The pain now hitting Ontario’s neighbour and putting at risk Michigan’s automotive and manufacturing jobs is also being acutely felt by Windsor companies forced to adjust to the uncertain trade landscape.

Article content Stellantis, which employs nearly 4,500 people at its Windsor Assembly Plant, reported in June a $3.58-billion revenue hit for the first half of 2025, a net revenue plunge of 13 per cent.

Article content Tariffs were blamed for the automaker’s first-half losses, as well as higher industrial costs and the heavy re-investment needed to re-align the company’s product offerings.

Article content “I think Governor Whitmer … recognizes how closely intertwined the auto industry is between Canada, the United States and Mexico,” Unifor Local 444 president James Stewart told the Star.

Article content “There’s a disruption in the whole pipeline that really causes havoc in all three countries. The tariffs have affected decisions the company’s are making short-term. There’s no doubt, if tariffs stay long-term, it would be devastating to Canada.

Article content Whitmer’s strategy for dealing with Trump highlights the conundrum for her and other Democratic leaders as they try to protect the interests of their states while voicing their opposition to his agenda. It’s a dynamic that Whitmer has navigated much differently from many other Democratic governors.

Article content The fact Whitmer had “an opening to make direct appeals” in private to Trump was unique in this political moment, said Matt Grossman, a Michigan State University politics professor.

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Article content It was her third meeting with Trump at the White House since he took office in January. This one, however, was far less public than the time in April when Whitmer was unwittingly part of an impromptu news conference that embarrassed her so much she covered her face with a folder.

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Article content She told the president last week the economic damage from the tariffs could be severe in Michigan, a state that helped deliver him the White House in 2024. Whitmer also brought up federal support for recovery efforts after an ice storm and sought to delay changes to Medicaid.

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Article content Trump offered no specific commitments, according to people familiar with the private conversation who were not authorized to discuss it publicly and spoke only on condition of anonymity to describe it.

Article content Whitmer is hardly the only one sounding the warning of the potentially damaging consequences, including factory job losses, lower profits and coming price increases, of the import taxes that Trump has said will be the economic salvation for American manufacturing.

Article content “These border governors know how tightly our economy on auto and auto manufacturing are tied, and they recognize that it affects jobs in the United States as well as Canada,” said Stewart, who represents unionized employees at Windsor Assembly and other auto sector workers.

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Article content “It’s the first time he (Trump) has heard it. He’s heard it from his side. He’s heard it from border states already. He’s heard it from people on his own team. So, do I expect a change?

Article content “You know, obviously we’re hoping some sense comes to the U.S. administration, especially in terms of tariffs, because it’s not just tariffs on auto parts, it’s on aluminum and steel. It’s the constant, changing dynamic, which is ruining consumer confidence.”

Article content White House spokesman Kush Desai said no other president “has taken a greater interest in restoring American auto industry dominance than President Trump.” Trade frameworks negotiated by the administration would open the Japanese, Korean and European markets for vehicles made on assembly lines in Michigan, Desai said.

Article content Trump claims to have brought in US$17 trillion in investment commitments, although none of those numbers has surfaced yet in economic data.

Article content Under his series of executive orders and trade frameworks, U.S. automakers face import taxes of 50% on steel and aluminum, 30% on parts from China and a top rate of 25% on goods from Canada and Mexico not covered under an existing 2020 trade agreement. That puts America’s automakers and parts suppliers at a disadvantage against German, Japanese and South Korean vehicles that only face a 15% import tax negotiated by Trump last month.

Article content On top of that, Trump this past week threatened a 100% tariff on computer chips, which are an integral part of cars and trucks, though he would exclude companies that produce chips domestically from the tax.

Article content Whitmer’s two earlier meetings with Trump resulted in gains for Michigan. But the tariffs represent a significantly broader request of a president who has imposed them even more aggressively in the face of criticism.

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Article content Materials in the presentation brought by Whitmer to the meeting and obtained by The Associated Press noted how trade with Canada and Mexico has driven US$23.2 billion in investment to Michigan since 2020.

Article content General Motors, Ford, and Stellantis operate 50 factories across the state, while more than 4,000 facilities support the auto parts supply chain. Altogether, the sector supports nearly 600,000 manufacturing jobs, forming the backbone of Michigan’s economy.

Article content To Grossman, the Michigan State professor, a key question is whether voters who expected to be helped by tariffs would react if Trump’s import taxes failed to deliver the promised economic growth.

Article content “Everyone’s aware that Michigan is a critical swing state and the auto industry has outsized influence, not just directly, but symbolically,” Grossman said.

Article content The heads of General Motors, Ford and Stellantis have repeatedly warned the administration that the tariffs would cut company profits and undermine their global competitiveness. Their efforts have resulted in little more than a temporary, month-long pause intended to give companies time to adjust.

Article content In the second quarter alone, Ford reported $800 million in tariff-related costs, while GM said the import taxes cost it $1.1 billion. Those expenses could make it harder to reinvest in new domestic factories, a goal Trump has championed.

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Since Trump returned to the White House, Michigan has lost 7,500 manufacturing jobs, according to the U.S. Bureau of Labor Statistics.

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