Michigan on Edge as Auto Tariffs Aim at Canada

DETROIT — From his office in downtown Detroit, Glenn Stevens Jr. can gaze out and behold Canada. This vista symbolizes the profound automotive accomplishments shared across these two nations, separated only by a winding river and an international boundary line — one that now teeters on the edge of potential rupture.

The automotive economies of Ontario and Michigan operate as a single entity," remarked Stevens, the executive director of MichAuto, on Friday. "There isn’t really a distinction; we see them as entirely interconnected, with just a few bridges separating the two regions.

The divide between nations has sharply intensified due to U.S. President Donald Trump's auto tariffs causing bewilderment and worry within the closely interconnected North American sector.

On Thursday, Trump imposed 25 percent tariffs on all imported vehicles into the United States. A White House source verified that autos produced according to the terms of the Canada-United States-Mexico Agreement on trading regulations would face severe duties until a mechanism is established to assess the proportion of American-made components used in each completed vehicle. Once this evaluation process is operational, tariffs will apply solely to the portion of non-American materials.

What that will mean for Michigan is yet to be seen, Stevens Jr. said, but tearing apart the century-old relationship will not come without pain for the entire North American auto sector.

He stated, “Dismantling it isn’t beneficial—not only for the region’s competitiveness—but also for the broader competitiveness of North America as a whole.” He added, “Our genuine concern is that during this period when we ought to enhance our edge over global competitors such as China’s auto sector, we’re actually breaking down systems that function well and possess strength.”

Detroit is famously recognized as " Motor City" and has historically housed the headquarters of the Big Three —Ford, General Motors, and Stellantis— yet its strong connections with Canada run deep.

In the early 1900s, as Henry Ford laid the foundation for the American automobile sector, John and Horace Dodge were establishing a bicycle business in Windsor, Ontario, just across the river from Detroit. Alongside this venture, they began producing automotive components, which quickly earned them recognition due to their exceptional workmanship even reaching Ford himself. Ultimately, they launched their own enterprise, giving rise to what would become one of the best-known marques—Dodge.

The Ford Motor Company of Canada commenced operations in Walkerville, Ontario, in 1904, assembling vehicles using components imported from the United States. This relationship became even more integrated following the signing of the 1965 Auto Pact trade agreement between Canada and the U.S.

Chris Vitale, who retired from Stellantis last December after 31 years in the auto industry, said he uses the Auto Pact as an example of "a trade deal done right." He blames the North American Free Trade Agreement for shattering the automobile industry in the United States and Canada with the addition of Mexico and its cheaper labour.

Vitale, who serves as a city council member for St. Clair Shores in Michigan, attended an event at the White House on Wednesday to demonstrate his backing as President Trump escalated the international trade conflict by introducing reciprocal tariffs. Vitale echoes the sentiments of numerous auto industry employees who are frustrated with perceived trade obstacles globally that hinder the American marketplace.

United Auto Workers President Shawn Fain has praised the automobile tariffs and applauded Trump "for stepping up to end the free trade disaster that has devastated working class communities for decades."

Vitale is conflicted. On the one hand Vitale feels like he’s "being handed a win that I never thought I'd see in my lifetime." On the other, "I wish Canada wasn't caught up in the middle of this," he said.

"(Trump's) making the right moves in most of these other countries that are more adversarial," Vitale said. "We don't really even consider the Canadians to be adversarial."

Vitale hopes "this was a shock and awe moment and negotiations are scheduled" so that Canada is no longer "catching some crossfire."

Car components can cross the boundary between Michigan and Ontario as many as twelve times during the production of a single vehicle. Starting next month, these new tariffs will also affect automotive parts that comply with CUSMA but include non-American elements.

The primary motivation behind Trump and his team was to revive domestic manufacturing employment. According to a previous U.S. official from the initial Trump administration speaking anonymously, President Trump’s team strongly feels that relocating all operations back to America is key to evading tariffs, even though this comes with considerable hurdles.

The stock markets have plummeted since Trump announced his worldwide tariff plan just moments before the auto tariffs were implemented. Moving ahead, the key issue will be whether the administration maintains its stance amidst volatile markets, all while attempting to preserve the CUSMA supply chains.

It remains uncertain how much Americans will tolerate as the president moves to reshape global trade, but residents of Michigan are particularly displeased, seeing their key industries and strong ties with Canada facing potential setbacks.

Michigan’s foremost trading partner is Canada, and although certain locals back President Trump’s broader strategy aimed at cutting trade deficits and taking a tough stance with many nations, imposing tariffs on their northern counterparts seems unpoplar among them.

Similar to many individuals in Detroit, Julie Soyer has acquaintances and relatives employed in the automotive sector.

“I’m worried they will get laid off,” she said.

David Piontkowski said he has friends and family scared about losing their jobs, too. Tariffs can be an important tool, he said, but "Canada has not done anything wrong."

"I never in my lifetime thought I would see tension with Canada," he said. "It’s sad. I don’t want to see that."

This report by The Canadian Press was first published April 5, 2025.

Kelly Geraldine Malone from The Canadian Press

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