Pending tariffs on Chinese imports imposed by President Trump, due to take effect in less than two weeks, could result in significant job losses in Michigan, according to nonprofit groups that advocate for Midwest manufacturers, retailers and farmers.
At stake is a backlash to the Trump trade war with China that could spark an economic downturn in Michigan and several other states.
These pro-business groups, Tariffs Hurt the Heartland and Americans for Free Trade, released new data that estimated Michigan will lose approximately 25,000 jobs if tariffs on certain imports from China are raised to 25 percent on March 1st.
Based on data from the U.S. Labor Department and Census Bureau, these dozens of business trade associations conclude that Michigan has already been hit hard by retaliation to the Trump administration tariffs.
For example, in November 2018 Michigan businesses paid $137 million in tariffs, 10 times higher than the amount paid in November 2017. Meanwhile, international trade remains a prime driver of economic growth in Michigan, supporting an estimated 1 million jobs.
Since the trade war began, Michigan has faced $295 million in new retaliatory tariffs, including $53 million just in November. As a result, Michigan’s global exports that were subject to Chinese retaliation dropped by 14 percent.
While the net effect of a Chinese backlash is still being calculated, nationwide, American businesses paid $5.6 billion in tariffs in November.
In the correspondence with Whitmer, the anti-tariff coalitions wrote:
“As the statistics we released show, tariffs are already undercutting small business owners, the primary driver of economic growth and job creation. The additional threat of raising tariffs to 25 percent on $200 billion worth of imports from China – and the (Chinese) threat to impose similar duties on $267 billion more of such (U.S.) products – will only make the situation worse.”