Trade between two countries isn’t a zero-sum game, with one winning and the other losing. It’s beneficial when countries specialize in producing certain goods and then trade them with others. Trade is especially true for places like Michigan, where a global supply chain fuels industries, creates jobs and supports families. But protectionist policies, including tariffs, put all that at risk.

The theory behind tariffs sounds appealing: Make imported goods more expensive and local producers will thrive. That’s not how it works in practice, however. Tariffs raise costs on everyday products and hurt most of the very industries they claim to protect. Automakers, for instance, stay on the competitive edge by importing parts they use in building cars here. When tariffs drive up the cost of those parts, the cost of finished vehicles rises. This limits sales of domestically made vehicles, slashes production, threatens jobs and gives an advantage to foreign producers that don’t have to pay these costs.

The Anderson Economic Group estimates that the lowest tariffs on imported vehicles would increase car prices by $2,500 to $5,000. That’s a $30 billion hit to American consumers in just the first year. The damage doesn’t stop there. Retaliatory tariffs from other countries can crush U.S. exports, harming manufacturers and workers across the board. The current proposed tariffs increase costs to both American producers and consumers, and they make the industry less competitive. This doesn’t put Americans first.

This dynamic shows up prominently in trade between Michigan and Canada. Canada is Michigan's largest trading partner. It receives more of Michigan's exports than any other country, and Canada is the largest source of Michigan's imports. Michigan exports more to Canada than almost any other state, and 60% of trucks crossing from Canada into the U.S. go through Michigan. That number will likely rise with the opening of the Gordie Howe International Bridge.

This cross-border partnership is critical: Auto parts routinely cross multiple times during a vehicle’s production, pipelines bring energy between the two countries, and Michigan companies even supply the Canadian military. Disrupting these relationships with trade barriers doesn’t just raise prices, which is bad enough. Worse, it undermines decades of economic cooperation and trust.

Tariffs may be politically tempting, but they come with serious costs. For Michigan, they threaten to upend a thriving international relationship that helps drive our economy forward.

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