MILFORD, Mich. (AP) — Flying to a rally at General Motors this week, President Donald Trump declared that "car companies are doing better than they've ever done" thanks to his tariffs.
"All because of Trump," he said.
It was a message the Republican president repeated while touring a collection of new vehicles, predicting that "it's amazing what tariffs will do for General Motors" before autographing a white Corvette commemorating America's 250th anniversary. He later told a crowd of cheering supporters that "Michigan is thriving."
That's not exactly true, according to many metrics. Tariffs have cost businesses in Michigan and across the country billions of dollars while helping to stoke inflation that has continued to run hot — despite Trump's assurances his business background would wipe it out.
Many Americans believe tariffs have pushed prices higher and the war in Iran has increased gasoline prices, hurting consumer confidence in the economy while keeping Trump's approval ratings low.
There are few places where contradictions between the president's boasts and the economic reality of his tariffs are more likely to collide ahead of November's midterm elections than in battleground Michigan, which holds its primary on Tuesday. Trump won the state in 2016 and then again in 2024, after it had flipped to Democrat Joe Biden in 2020.
Automakers plan to increase domestic production — eventually
Republican Michigan House Speaker Matt Hall praised tariffs at Trump's rally, while also noting the president last year announced a new fighter jet mission that secured the future of the state's Selfridge Air National Guard Base.
"This is what putting Michigan first looks like," he said.
Some auto companies have pledged to ramp up U.S. production, yet those benefits aren't being felt yet. GM announced in June 2025 it planned to invest $4 billion to shift some vehicle production from Mexico to the U.S. starting next year.
Ford and Stellantis, which owns Chrysler, have a similar timeline for expanding domestic operations.
Toyota also said it would invest $3.6 billion and relocate production of its Tacoma pickup from Mexico to Texas, but that will happen over roughly four years.
In the meantime, Michigan has seen only modest increases in auto sector job creation during Trump's second term, while jobs tied to auto parts manufacturing declined by about 4,000 statewide through June when compared with the same month last year.
Michigan has lost 8,300 manufacturing jobs since Trump announced his "Liberation Day" tariffs in April of last year, according to the Bureau of Labor Statistics.
Michigan and Canada have deep trade ties
Though the Supreme Court struck down many of the tariffs Trump ordered upon first returning to the White House, his administration has launched new import taxes and recently invoked the Tariff Act of 1930 to accuse Canada of using discriminatory practices and plans to impose 50% tariffs on many imports from that country.
Michigan relies on supply chains that are heavily integrated with Canada after decades of policies that encouraged reducing bilateral trade barriers. That included the United States-Mexico-Canada Agreement from Trump's first term. Trump chose not to renew that trade pact, setting up years of negotiations.
GM said it was "honored to spend time showcasing our vehicles and facilities" for Trump. But automakers have long said tariffs increase production costs — so much so that the president offered them a reprieve from his auto parts tariffs, extending in October what was supposed to have been a short-term rebate until 2030.
