News of the Day: Tariffs and Trade Policy

The Chamber team was especially intentional in developing this year’s State of the Region program, using the event as a timely platform to discuss a palpably relevant topic for the business leaders in the room: impending tariff implementation and the critical U.S.-Canada trade partnership. The Chamber and its MichAuto program have been at the forefront of this topic, advocating on behalf of the state’s signature automotive industry and economy, encouraging policymakers to reconsider implementing harmful new tariffs.

To meet this critical moment, the Chamber selected experts on this topic to share with attendees what is at stake for the regional, state, and national economies in the face of tariffs and Michigan’s disproportionate vulnerability to these trade policy changes.  

Panelists Examine What’s at Stake for US-Canada Trade Relationship

Former Michigan Governor and U.S. Ambassador to Canada James Blanchard kicked off the program with a pointed presentation about what’s at stake for Michigan’s leading industry and one of its most important trade relationships amid fluctuating trade policies and tariffs.

Following his remarks, Blanchard joined panelists Colin Bird, Consul General to Canada in Detroit, and Aida Dismondy, Senior Counsel at Warner Norcross + Judd LLP, and the Chamber’s own Sandy K. Baruah to discuss the topic further and help attendees understand the risk tariffs pose to Michigan’s economy and signature industry, as well as to the critical economic partnership between the U.S. and Canada.

Thank you to longtime friend of the Chamber, journalist and author Devin Scillian, for moderating this engaging conversation. Read a recap.

Chamber, MichAuto Continue to Lead Advocacy on Tariffs

Earlier last week, before the event, the Chamber and MichAuto sent a letter calling on leaders in Washington to reconsider these harmful tariffs. View the full letter here. 

Though President Trump moved forward with the tariffs announced on April 2, the Chamber and MichAuto will continue to help members, the automotive industry, and the business community navigate the changes and call for action to secure our economic future. 

REPORT HIGHLIGHTS AND KEY TAKEAWAYS

1.

REGIONAL ECONOMY REMAINS RESILIENT THROUGH 2024

• The Detroit Region’s unemployment remained below 5% for three consecutive years. Payroll employment is up by 5,500 from 2023. 
• The Region’s housing market is a bright spot, ranking #1 among peers in homeownership and among the most affordable in the nation.

2.

THE DETROIT REGION LAGS PEERS IN MOST KEY METRICS

• The Detroit Region ranks in the bottom third in educational attainment, GDP, population, and jobs.
• The Detroit Region’s employment returned to 2019 levels, but while peers like Austin (21%), Dallas (13%), and Phoenix (13%) grew significantly.

3.

INFLATION CONCERNS PERSIST AS CONSUMERS GRAPPLE WITH HIGHER PRICES

• Inflation concerns doubled for Michigan voters, increasing from 16% to 29% since September 2024.
• Regional inflation fell to 3% in 2024, nearly reaching the Federal Reserve’s 2% target after reaching a peak of 8% in 2022.
• The average household in the Detroit Region lost $3,000 in purchasing power due to inflation in 2023.

4.

THE REGION AND STATE CONTINUE TO PROVIDE  A PROSPEROUS BUSINESS ENVIRONMENT

• Michigan ranks #1 for business-funded R&D and next-generation mobility investments among states.
• Michigan’s new business applications are 28% higher in 2024 than 2019 levels.

5.

MICHIGAN’S ECONOMY IS DISPROPORTIONATELY VULNERABLE TO FLUCTUATING TRADE POLICY

• The Region’s export market is at risk despite growing 11% since 2019, reaching the highest levels seen in five years. 
• Over 234,000 jobs in the Detroit Region depend on trade and investment with Canada.
• Michigan’s manufacturing-centered economy – especially within the automotive sector – as well as its agricultural industry and proximity to trading partner Canada, leave it particularly vulnerable to the negative impacts of volatile trade policies.

In the Media

Crain’s Detroit Business | Southeast Michigan’s Economy is Resilient, but Trails Peers, Study Finds

DBusiness | Report: Regional Business Outlook for 2025 and Beyond is a Mixed Bag

The Detroit News | Metro Detroit Business Leaders Eye Tariff, Inflation Risks

WJR-AM | Detroit Regional Chamber Releases State of the Region Report

WXYZ-TV | Auto Industry Gearing up for Tariffs at State of the Region

Thank You, Citizens

The Chamber team is grateful to Board Member Yasmeen Jasey and her team at Citizens for their many years of support for this event, the report, and our efforts to provide world-class data to members and the business community.