Trump's tariff hikes raise concerns on impact to schools, economy, Whitmer says

Francis X. Donnelly and Craig Mauger, The Detroit News on Apr 3, 2025

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ALPENA, Mich. — Gov. Gretchen Whitmer said Thursday she is worried about the effects of the tariff hikes President Donald Trump announced Wednesday and the damper they could have on economic growth and state tax revenues.

Trump announced 25% tariffs last week on imported vehicles and certain major auto parts would begin to be collected Thursday. The East Lansing-based consulting firm Anderson Economic Group LLC estimated the latest tariffs will add $2,500 to $5,000 for the lowest-cost American cars, and up to $20,000 for some imported models.

On Wednesday, Trump signed an executive order setting 10% baseline tariffs on imported goods starting Saturday and additional levies on worst-offender countries starting April 9, but excluded vehicles and their parts. The president's actions would include levies of 34% on China, 20% on the European Union, 46% on Vietnam, 32% on Taiwan and 24% on Japan, among about 55 others.

“I’m concerned about the impact on the economy and schools,” Whitmer said during a tour of storm-damaged northern Michigan on Thursday.

The governor appeared to be talking about the potential for tariffs to weaken consumer spending and prompt a decline in sales tax revenue, which is dedicated to financing Michigan's public school system.

During a stop at a Meijer store in Alpena, the Democratic governor said she wasn’t concerned that the criticism of the tariffs would affect her relationship with Trump, a Republican.

“No, I’ve never been shy about that,” Whitmer said. “I have a job to do. I’m trying to make people’s lives better.”

Unlike a handful of other prominent Democratic governors, such as California’s Gavin Newsom and Pennsylvania’s Josh Shapiro, Whitmer didn’t use her social media accounts on the platform X to bash Trump’s tariff measures on Wednesday.

Instead, it was Whitmer’s running mate, Lt. Gov. Garlin Gilchrist, a fellow Democrat who’s campaigning for Michigan governor in 2026, who posted a video with his thoughts.

Gilchrist said the tariffs “would jack up prices at the store and the dealership.”

“We all want to bring good paying manufacturing jobs back home to Michigan as soon as possible. And we all want to make more cars and parts here in Michigan and America,” Gilchrist said. “But sloppily slapping a huge 10-49% tax on materials that Michigan companies need will slow production lines, possibly leading to layoffs and raising the prices of cars and trucks.”

Whitmer cut off any other questions about the tariffs on Thursday as she left the store, trailed by a procession of state and Meijer workers. Spotting Easter candy near the exit, she halted her exit to buy some.

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