How Tariff Ruling Impacts Autos and Michigan's Economy

Washington — The Supreme Court's ruling that invalidated a key component of President Donald Trump's extensive tariff initiatives may significantly affect Michigan's trade-dependent economy, although the state's major automotive sector will likely remain largely unaffected.

"The ruling issued this morning by the Supreme Court, which invalidated the application of the International Emergency Economic Powers Act, accurately acknowledges that the law was incorrectly used when focusing on our allied trading partners in North America and other regions," stated Glenn Stevens, executive director of MichAuto, the automotive division of the Detroit Regional Chamber.

"Although we acknowledge that the Administration has other options to reinstate these tariffs, we remain convinced that Michigan's businesses are significantly harmed by them, particularly within our automotive, manufacturing, and agricultural industries," he stated.

The decision could offer temporary respite to certain Michigan companies, which have experienced fluctuating import taxes and warnings from Trump since his victory in the 2024 presidential election. However, the Republican leader and well-known advocate for tariffs promised on Friday afternoon to continue exploring other legal methods to impose duties on foreign products entering the country.

"Their choice is wrong, but it's not significant since we possess strong alternatives," Trump stated during a White House press conference. He referenced provisions from the Tariff Act of 1930, the Expansion Act of 1962, and the Trade Act of 1974.

Jason Miller, a supply chain management professor at Michigan State University, stated that he anticipates Trump will quickly utilize Section 122 to implement new 15% worldwide tariffs for up to 150 days.

"It's not finished yet," Miller stated in an email.

The instructor stated that the Trump administration is expected to utilize all available measures, including the same tariff powers it used to implement automotive tariffs in 2025. These taxes necessitate federal inquiries regarding national security concerns or unfair trade practices that negatively impact U.S. interests.

If the federal courts prevent any of Trump's temporary tariffs, Miller proposed, there could be "a significant increase in imports entering the United States in a short period." A large portion of these imports would probably be headed for Michigan.

The state known as the Great Lakes imported approximately $167 billion in goods during the previous year, ranking fifth in the nation for import value even though it is the 10th-largest state in the U.S. The automotive sector accounts for over half of this total, but other industries that were more affected by the recently ended IEEPA tariffs — such as furniture, chemicals, and pharmaceuticals — each contribute more than $1 billion in annual imports for Michigan, as per federal trade statistics.

Stevens from MichAuto stated that companies in Michigan and other regions thrive when they have clarity regarding tax and economic situations.

"Truly, for our industries in Michigan, our priority is still: Let's establish a renewed and stronger USMCA deal. That is what truly affects Michigan's economy, and that's our current focus," he stated during a phone interview, mentioning the United States-Mexico-Canada free trade agreement currently being reviewed at the federal level.

It's somewhat difficult to determine how this decision affects Michigan's economy at the moment," Stevens stated. "Additionally, due to the administration's indication of possible other measures, there remains a degree of uncertainty that our industries struggle to function effectively within.

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This piece first was published in The Detroit News:How the tariff decision might impact cars and other Michigan sectors