Protestors and proponents alike turned out during a visit by President Donald Trump to suburban Detroit. The president promised tariffs will lead to more good-paying jobs in the United States and an economic boom in the future. But he also announced steps providing tariff relief as automakers prepare for the possibility of a sharp slump in sales and earnings — as well as job cuts — in the months ahead.
Pres. Trump made several stops in Detroit Tuesday, including one at a national guard base.
In a ninety-minute speech short on specifics, President Donald Trump told a cheering crowd in suburban Detroit new auto jobs would “pour back” into Michigan as tariffs push for re-industrialization across the Midwest.
On the same day he came to visit suburban Detroit, however, the president took steps to ease the pressure on automakers worried that tariffs could bring a sharp drop in sales and earnings in the months ahead.
In his latest shift on tariffs, Trump signed an order allowing automakers to apply for “an import adjustment offset amount.” Effectively, the move gives automakers time to begin shifting production of parts and components back to the U.S., according to the White House.
Trump defends record for first 100 days
The president defended his tariff policy during a speech meant to mark 100 days in office.
The President’s appearance outside Detroit drew a sizable crowd of supporters, along with a large protest outside Macomb Community College in Warren, Michigan. Opponents greeted the president with homemade signs challenging the sharp cuts to government services ordered by Trump and his chief lieutenant, billionaire Elon Musk.
Most of Trump’s speech was arranged to hail his first one hundred days as the nation’s forty-seventh President. “We’re here tonight in the heartland of our nation to celebrate the most successful first 100 days of any administration in the history of our country,” said Trump, who devoted most of his time on center stage to touting his record on closing off what he called the Southern Border and rounding up illegal immigrants.
At one point, Trump showed a film clip of illegal immigrants being deported to a notorious prison in the Central American Country of El Salvador.
“We’ve just gotten started. You haven’t even seen anything yet,” said Trump.
Trump says tariffs key to growing U.S. industrial base
Trump has pulled back on a number of sanctions as pushback has grown.
However, since Trump was visiting Michigan, which he succeeded in winning narrowly in his successful campaigns for the White House, he also boasted about his ability to help the auto industry. Trump claimed he was fielding inquiries from automakers all over the world. “They all want to come back to Michigan and build cars,” he said.
Trump’s tariff policies have changed repeatedly since his January inauguration. A number of sanctions have been put on hold, though the administration has maintained tariffs on both imported steel and aluminum, as well as on imported autos and auto parts.
“This is going to create great jobs,” Trump said.
More Tariff News
- Automakers Find Ways to Offset Tariffs
- Bye-Bye Buick? Trump Tariffs Could Kill This Brand
- GM Earnings Tumble, Full-Year Results Likely to be Hurt by Tariffs
Automakers get some relief
New executive orders are meant to provide some tariff relief to the auto industry.
But critics contend such jobs won’t come quickly. If anything, auto analysts warn there could be a sharp drop in new vehicle sales, production and jobs in the coming months. Manufacturers have demanded some form of relief and the White House responded on Tuesday with revisions that could reduce tariff costs over the next two years.
The import adjustment offset will allow automakers to apply for reimbursement for a percentage of the tariffs covering imported parts – but only on vehicles assembled in the United States. The reimbursement will phase out after two years.
A second executive order means automakers won’t have tariffs –such as the one on imported steel and aluminum — stacked on top of one another.
Speaking on background, several industry sources said they appreciated any possible relief, but felt the moves weren’t enough to reflect the global nature of the auto industry.
Trump still wants Canadian and Mexican Assembly lines shut
A Chevrolet Silverado pickup rolls down the GM assembly line in Silao, Mexico.
Over the past 30 years a well-integrated network of parts and assembly plants has built up across North America. The USMCA trade bill signed by Trump during his first term set rules under which parts and fully assembled vehicles could continue to cross the borders between the U.S. and its two closest neighbors.
But Trump is now pushing to reduce the percentage of vehicles built in Canada and Mexico. About 12% of the vehicles sold in the U.S. are assembled in Canada, and 32% are built in Mexico, but bringing the production back into the U.S. requires rewriting the USMCA trade agreement.
“We’re charging Mexico and Canada big tariffs,” said Trump, although such tariffs will require months of negotiation.
Trump emphasize blue-collar appeal
UAW President Shawn Fain has generally opposed Trump policies but the union praised the new tariffs.
Trump, whose economic policies are being challenged by inflation, and volatile markets for stocks and bonds, leaned into his populist base by telling the crowd in Michigan he wanted to help “Main Street rather than Wall Street.” He also took a jab at the Federal Reserve Board and its chairman Lewis Powell, noting he is not allowed to say anything bad about him.
At one point during his appearance, the President invited Brian Pannebecker, head of “Autoworkers for Trump,” to the stage. Often featured at Trump events and a regular on Fox News, Pennebecker has come to symbolize Trump’s connections to blue-collar workers. He told the crowd Trump has promised to write the introduction to a book he is now writing.
When the 25% tariffs on autos and auto parts were announced, Trump received a rare endorsement from the United Auto Workers Union. UAW chief Sean Fain has long called for tariffs and other steps meant to bring auto jobs back to the U.S. But Fain had actively campaigned for Trump’s opponent, Kamala Harris, during the 2024 election and he – and other UAW officials — were notably absent from the Trump rally on Tuesday.
Trump defends Musk
Tesla CEO Elon Musk’s ties to Pres. Donald Trump are now seen as hurting the brand.
Trump’s visit to Michigan put him just miles from the U.S. border with Canada where the Liberal Party pulled off an unexpected victory in parliamentary voting on Monday. Trump had supported the Conservatives in the election and the winner, Liberal Mark Carney responded to his election by essentially declaring a split between the U.S. and Canada on key issues, such as trade.
For his part, Trump made no reference to the Canadian elections or the comments by its prime minister.
Trump, however, did make a point of defending Elon Musk – who last week said he would pull back his work with the Trump administration to focus more time on troubled Tesla. That move came after Musk suffered a stinging rebuke in a Wisconsin Supreme Court election. Despite pouring millions into the campaign backing a conservative candidate, a more liberal jurist won by more than 10 points.
Musk’s role as the head of the Department of Government Efficiency has repeatedly been hailed by Trump, though DOGE has had to sharply reduce its cost-savings claims. Meanwhile, Musk has become a prime target for those opposing the Trump administration, with constant protests targeting Tesla dealerships. The automaker suffered a large drop in sales during the first quarter, and earnings were off more than 70%.
For his part, Trump told the crowd, “It’s not fair what’s happening to Elon,” said Trump in an oblique reference to the big drop in Tesla’s sales and profits. “He’s a great American and loves this country.”
0 Comments