• Michigan manufacturers experiencing uncertainty under Trump administration’s steep tariffs on foreign imports
• As of August, Michigan’s total jobs were slightly up from last year, but jobs in the manufacturing sector were down 1.5%
• Despite volatility, some companies are investing in domestic production, hold out hope that they’ll come up winners

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President Donald Trump took a victory lap on Wednesday after two major Michigan manufacturers announced domestic expansion plans.  

A $13 billion announcement from Stellantis, which includes 900 expected jobs for Michigan, and Whirlpool’s $300 million plan for Ohio are proof that “America’s manufacturing sector is surging forward with unprecedented momentum,” the White House said.  

United Auto Workers President Shawn Fain, a vocal Trump critic, credited the president’s aggressive tariff policy with pushing Stellantis to invest domestically.

“Their decision today proves that targeted auto tariffs can, in fact, bring back thousands of good union jobs to the US,” he said in a statement. “Wall Street and supposed industry experts said this was impossible. But (the) race to the bottom created by free trade is finally coming to an end.”

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Critics have long argued that the ongoing tariff volatility could be disastrous for Michigan, where the Detroit Three automotive companies and their suppliers have long relied on a supply chain that transcends state and national borders. 

Experts and industry groups say smaller firms may be particularly susceptible because they already operate with tighter margins. 

That’s the case at Industrial Service & Design in Williamston, where owner Gabe Modert said this week he’s brainstorming ways to keep his shop lights as his auto clients scale back production and other projects are in flux. 

Modert, who runs the small specialty equipment manufacturing company with his family, said his largest customer in the automotive industry recently slashed its planned build schedule in half for the next 24 months, in part because of increased tariffs on foreign imports. 

Other work producing equipment for the medical industry, electric vehicles and university research has similarly dried up amid President Donald Trump’s efforts to overhaul US trade policies and scale back government spending.

“We’re a very small company, so that kind of impact is huge on us,” Modert told Bridge Michigan. “We haven’t been able to properly plan or forecast anything for probably the last six months, at best…there is no certainty.” 

For Modert and many other Michigan manufacturers, the Trump administration’s tariffs on a wide array of imported goods continue to inject unpredictability into their business models. 

As of Tuesday, new 10% tariffs on imported wood and timber and 25% tariffs on kitchen cabinets, upholstery and other furniture have taken effect. Trump in recent days also signaled the possibility of additional tariffs of up to 100% on Chinese imports as trade tensions escalate.

That’s on top of existing broad tariffs targeting foreign-made cars and parts, raw materials like steel and aluminum and imports from nations the Trump administration argues haven’t treated the US fairly in trade.

Some manufacturers have fared better than others in recent months, industry experts said, including aerospace, electrical and data center infrastructure tied to artificial intelligence. 

Others have remained optimistic about the long-term effects despite initial challenges, including steel manufacturers and Benton Harbor appliance giant Whirlpool, which on Wednesday announced a $300 million investment in its laundry manufacturing facilities in Ohio. 

“In North America, we’re very well-positioned for growth, driven by our new product innovation, significant domestic manufacturing footprint and housing demand fundamentals,” Whirlpool Chief Financial Officer James Peters said in a July quarterly earnings call, predicting the company would emerge a “net winner” from the tariffs. 

Domestic investments

The shifting tariff landscape has so far resulted in weakened momentum on new orders, employment rates and capital investment across the manufacturing sector, said Jason Miller, a supply chain management professor at Michigan State University’s Eli Broad College of Business.

“A lot of the issues have been the extent of uncertainty associated with tariffs, maybe even more so than the tariffs themselves,” Miller said. “No one wants to make long-term capital investments that may be rendered valueless if tariff policy were to change.”

The president has argued international trade policies have disadvantaged US workers for decades and claims the sweeping tariffs will boost the nation’s manufacturing base and raise funds for lowering taxes and reducing the national deficit. 

Trump and leading trade officials have continued to express confidence the strategy would be a net positive for the US and ultimately convince more companies to increase domestic production, as well as reduce the flow of cheaper foreign goods into US markets. 

Stellantis’ $13 billion announcement includes a $100 million investment in the Warren Truck Assembly plant. The company anticipates adding more than 900 jobs there once two planned new vehicles are brought online in 2028.

“This investment in the U.S. – the single largest in the company’s history – will drive our growth, strengthen our manufacturing footprint and bring more American jobs to the states we call home,” Antonio Filosa, CEO and North America COO, said in a statement. 

Part of the Stellantis plans involve shifting production of the Jeep Compass from an Ontario plant to the Belvidere Assembly Plant in Illinois, a decision that angered Canadian officials. 

Canadian Prime Minister Mark Carney said the move was a “direct consequence of current U.S. tariffs and potential future U.S. trade actions” and said the government expects Stellantis to fulfill obligations to Canadian workers. 

Canada is Michigan’s largest international trade partner. The state imports more than $50 billion in Canadian goods annually, including crude oil, natural gas and raw materials, and exports $27.5 billion in goods.

As a border state whose economy is closely intertwined with Canadian neighbors, Michigan is particularly vulnerable to the impact of retaliatory tariffs, experts and observers have told Bridge Michigan.

‘Driving a lot of paralysis’

Gov. Gretchen Whitmer, who celebrated the Stellantis news Tuesday, has argued that Trump’s tariff policies could ultimately lead to a decline in trade between key international partners, resulting in major job losses, widespread supply chain disruptions and shortages in fuel, parts and produce.

“China would love nothing more than to watch us cripple our own economies,” Whitmer said, later adding, “We cannot afford to serve them the North American auto ecosystem on a silver platter.” 

In July, Whitmer directed state departments to assess the potential impact of tariffs on Michigan, saying as much as 60% of costs could be passed along to consumers. 

As of August — the most recent data available due to delays from the federal government shutdown — the federal Bureau of Labor Statistics reported manufacturing jobs were down 78,000 nationally since this time last year. Though Michigan’s total jobs were slightly up from August 2024, jobs in the manufacturing sector are down 1.5% in that time frame.

Recent federal inflation data pointed to price increases among tariff-sensitive products, such as apparel, audio equipment and groceries, along with auto parts.

Though impacts have varied by industry, no Michigan manufacturer has been immune to the federal changes, and many have taken a “wait and see” approach that’s holding up long-term decisions, said Laurie Harbour, a partner at the advisory and accounting firm Wipfli who works with manufacturing clients.

“It’s frankly driving a lot of paralysis — people are not making decisions to buy capital,” Harbour said. “We’re just kind of holding out to see if things change.”

Silver linings?

Some companies with a Michigan presence whose US-made products aren’t subject to the same tariffs as their foreign competitors remain bullish on their long-term prospects. 

Lourenco Goncalves, CEO of the Ohio-based steel manufacturer Cleveland-Cliffs, recently told Politico he helped influence the 50% tariff on foreign steel and aluminum products to help bolster US steel production, noting he’s beginning to see some positive impacts on business. 

Earlier this year, Cleveland-Cliffs idled some of its Michigan operations in Dearborn, laying off 600 employees due to decreased demand from automakers. At the time, company officials said steel production at Dearborn Works would likely resume “once President Trump’s policies take full effect and automotive production is re-shored.”

In comments to Politico, Goncalves predicted automotive business would improve by next year under Trump’s policies, which he believed would help accomplish the goal of reviving the US steel industry: “It’s a monumental task, but we’re gonna fight. We’re going to try to do it. And I believe we are being very successful.” 

Another steel manufacturer with a Michigan presence, Baltimore-based Marlin Steel Wire Products, has been publicly supportive of the strategy. CEO Drew Goldblatt recently told Fox Business it’s an “optimistic time for American manufacturing” and said companies like his now have “all these opportunities that didn’t exist just a couple of months ago.” 

While there has been a slight uptick in US steel production since tariffs took effect, Miller, the MSU professor, cautioned that higher costs on steel-based products due to tariffs on other goods could result in people buying less overall. That could reduce demand for steel and make for a “net negative” impact, he said.

Uncertainty persists 

Tariffs on steel and aluminum products, as well as new levies on most foreign imports, increased production costs for Whirlpool and led to foreign competitors “pre-loading” the market with product ahead of tariff deadlines, company officials wrote in a summer filing with the US Securities and Exchange Commission. 

The company, which produces washers, dryers and other home appliances, was nonetheless confident that long-term benefits would outweigh short-term uncertainty.

The addition of home appliance imports to the list of derivative steel products subject to tariffs “is expected to help close long-standing loopholes and help support a level playing field for domestic producers,” the filing reads. 

On Wednesday, Whirlpool announced a $300 million investment expected to create 400 to 600 new jobs at two Ohio facilities to increase domestic production. 

“We are proud to reinforce our commitment to the communities and plants where generations have not only built appliances but careers, families and futures,” Vice President of U.S. Manufacturing Kristin Day said in a statement. “This investment builds on that legacy, enhancing our manufacturing capabilities and ensuring we can continue producing world-class appliances right here in America.”

Whirlpool’s optimism that its US manufacturing presence and eventual improvements in the housing market will bolster its success haven’t outweighed concerns about the competition, however. 

Last month, Whirlpool submitted research to federal agencies on suspicion that overseas competitors were undervaluing imports to avoid paying tariffs, the Wall Street Journal reported. Other home appliance manufacturers have denied the claims, including GE Appliances, which called the insinuation “irresponsible and inappropriate.”

Industry experts say it’s too early to tell exactly how tariffs will play out for Michigan manufacturers, in part because they’re not happening in a vacuum: interest rates are high, costs are up, consumer demand is flagging, all of which could pose problems for business in coming months.

“We just have to get through the pain of it,” Harbour, the manufacturing consultant, said. “For some companies, that will be not a problem, and for others, they’re going to see challenges, and some companies may not make it through the turmoil.”

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