WASHINGTON — As yet another self-imposed deadline for President Donald Trump's tariff threats looms Friday, Michigan Gov. Gretchen Whitmer is raising concerns about impacts on the state economy.

"I have heard from countless Michiganders alarmed by the way Washington Republicans are handling tariffs,” Whitmer said in a press release. “Tariffs have weakened Michigan supply chains, increased costs for family budgets, and caused major firms to scale back operations in Michigan."

The Democratic governor signed an executive directive Thursday asking several state offices to assess the Michigan impacts of the Trump administration's high and oft-changing import taxes. The move came a day before Trump was set to hike tariffs on several countries, including top state and national trade partners Canada and Mexico.

The tariff stakes are higher for Michigan than for most other states. The Mitten's manufacturing-heavy economy is especially reliant on imports and has already been squeezed by Trump's existing tariffs and threats of more, with months-long uncertainty freezing businesses as they try to plan for the future. A recent string of bilateral deals, according to analysts, will alleviate some but not all pressures — and will potentially create new ones.

"When I talk to my peers in other parts of the country, they are less concerned about this tariff situation than, frankly, we are," said Sandy Baruah, CEO of the Detroit Regional Chamber. "What might be less of a concern for a lot of America is not for Michigan, just because we are so capital-intensive and we are so U.S.-Canada focused."

In the past ten days, the Trump administration has announced trade deals with the European Union, Japan and South Korea — the latter coming late Wednesday. Trump announced a temporary agreement with Mexico on Thursday, but there is no deal yet for Canada.

"Given just the level of uncertainty that we've already seen, it comes with a little bit of relief," Baruah said of the recent trade deals. "But until things are really nailed down, I think there'll still be a sense of apprehension."

His comments came shortly before Trump announced the Mexico extension, which sets another deadline that businesses might again need to consider come October.

The EU, Japan and South Korea deals are centered around a 15% primary tariff rate, which Michigan automakers have balked at because of higher 25% rates on some of their vehicles and auto parts that travel within North America. The difference in rates, Ford Motor Co. CEO Jim Farley said in television interviews Wednesday with CNBC and Bloomberg, puts American manufacturers at a competitive disadvantage.

Trump's 90-day tariff extension for Mexico, according to his social media post on the topic, leaves current import taxes at the same rates. Those rates range from 50% on steel and aluminum to 0% for certain qualifying goods under the United States-Mexico-Canada free trade agreement he signed in 2020.

Determining the exact rates for automotive goods is complicated. For USMCA-compliant vehicles brought stateside, U.S. content is exempt while Mexican and Canadian content is still taxed at 25%. For USMCA-compliant auto parts shipped separately, there is a full exemption.

With Mexico's extension, Canada is now the top country without a deal ahead of Trump's Aug. 1 deadline. Baruah said the absence of an agreement — and the potential for even higher tariffs — is particularly dangerous for the regional economy around Detroit.

"In our corner of the world, the Ontario-Michigan region and related states, we're so intertwined with Canada," he said. "The EU is America's largest trading partner, but ours is Canada."

Trump has threatened to raise tariffs from 25% to 35% on non-USMCA-compliant goods from Canada, though details of the changes are not yet clear.

The president was critical of the country in a social media post shortly after midnight Wednesday, suggesting that differences over Israel's war in Gaza could affect a potential agreement: "Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!" Trump wrote.

Other major trade partners poised to see tariff hikes — or with new rates in place — include India (25%), Brazil (40%) and South Africa (30%). Michigan imported close to $1.2 billion worth of goods from India last year and more than $400 million each from Brazil and South Africa.

As for China, which was Michigan's fourth-largest trade partner in 2024, the United States has a temporary trade deal in place through August 12.

Trump on Thursday also made social media posts defending the economic and legal merits of his broad use of tariffs. "Tariffs are making America GREAT & RICH Again," the president wrote.

Whitmer rejected that notion in her executive directive: "Since January, actions on tariffs have led to massive economic uncertainty for families, businesses, and communities across Michigan. Rapidly changing prices on critical inputs for manufacturing and agriculture (two of Michigan’s leading sectors) have made it difficult for decision-makers to make capital investments for the future," she wrote.

"While I can’t control tariffs, I can make sure you know how they will affect your life and do everything in my power to help," she added in a press release. "I’ll continue fighting to grow Michigan’s economy with common-sense trade policies that lower costs for Michiganders.”

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