RESOLVING THE LEDGER
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See the full story · 1 sourcesMany Americans believe tariffs have pushed prices higher and the war in Iran has also increased gasoline prices, hurting consumer confidence in the economy
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President Donald Trump declared Michigan was "thriving" during a visit to a General Motors plant, crediting his tariff policies for what he described as an unprecedented boom in the auto industry.
Standing beside new GM vehicles before signing a Corvette, Trump said, "Car companies are doing better than they've ever done," adding, "It's amazing what tariffs will do for General Motors." Speaking later at a rally in Milford, northwest of Detroit, he told supporters, "Michigan is thriving."
But Trump's upbeat message comes as many businesses and consumers continue to feel the effects of higher import taxes. Economists and industry groups have warned tariffs have increased costs for manufacturers and contributed to higher prices, while rising gasoline costs linked to the conflict in Iran have further squeezed household budgets. Polls also show many Americans believe tariffs have pushed prices higher, weighing on consumer confidence.
The contrast is especially significant in battleground Michigan ahead of the state's primary elections. Trump carried Michigan in 2016 and again in 2024 after losing it to Joe Biden in 2020.
Even some of Trump's supporters at the rally acknowledged the financial strain.
Lisa Scherer, 64, an Ohio resident who drove nearly five hours to attend the event, said high gas prices are "hurting a lot" and making it "very rough" to afford everyday necessities. Living on $1,100 a month in Social Security, she said Trump had "forgot about the people on a fixed income," but added she still supports him.
Michigan's economy is closely tied to Canada through decades of cross-border trade. Although the Supreme Court struck down many of Trump's original tariffs, his administration has introduced new import taxes, including plans to impose 50% tariffs on many Canadian goods under the Tariff Act of 1930, a move that could disrupt long-established supply chains.
General Motors said it was "honored" to host the president, but automakers have repeatedly warned tariffs increase production costs. The White House has already softened some of those impacts by extending relief from certain auto-parts tariffs through 2030.
Veteran Michigan pollster Bernie Porn said Trump's rhetoric does not match what many voters are experiencing.
"When I was listening to him, I said, 'What planet are you on?'" Porn said, adding that inflation and affordability remain top concerns for many voters. He also warned Republicans could face enthusiasm problems heading into November, calling Trump "like an anchor around Republicans."
Joe Miskovich, a 57-year-old aerospace business owner from Fenton, Michigan, dismissed concerns about tariffs, saying Americans should "look at the bigger picture."
"There might be a little higher increase in price," he said, "but the long-term effect is going to be absolutely positive to the nation."
Trump also used the rally to boost candidates he has endorsed in next week's primaries, including Rep. John James in Michigan's Republican gubernatorial race. Former Rep. Mike Rogers, who is running for Senate, also addressed the crowd and urged voters to support Trump's agenda.
Michigan House Speaker Matt Hall praised the president's trade policies and highlighted Trump's decision to secure the future of Selfridge Air National Guard Base with a new fighter jet mission.
"This is what putting Michigan first looks like," Hall said.
While several automakers have pledged to expand U.S. manufacturing, many of those investments remain years away. GM announced plans to invest $4 billion to shift some vehicle production from Mexico to the United States beginning next year. Ford and Stellantis have outlined similar timelines, while Toyota plans to spend $3.6 billion moving Tacoma pickup production from Mexico to Texas over the next four years.
So far, the impact on Michigan jobs has been limited. Auto parts manufacturing employment has fallen by about 4,000 jobs over the past year, while the state has lost roughly 8,300 manufacturing jobs since Trump announced his "Liberation Day" tariffs last April, according to Bureau of Labor Statistics data.
Despite those concerns, the Milford rally remained overwhelmingly supportive. Supporters shouted "10 more years!" as Trump spoke, while others insisted the president's economic strategy simply needed more time.
Roy Parks, a 49-year-old self-employed handyman from Milford, compared the tariffs to "ripping off a Band-Aid."
"You may not like it at first, but it's short-term pain for long-term good," Parks said. "It works out in the end."
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