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LANSING, Mich. — The trade war between the U.S. and Canada escalated Tuesday as Ottawa fired back with retaliatory tariffs on a host of American goods.
“We stand united in fighting for Canada,” François-Philippe Champagne, Canadian minister of finance and national revenue, said.
Canada took a strong line, imposing tariffs up to 15%, 25% or 50% on more than 700 U.S. imports, totaling $27.6 billion, including paper, electronics, steel and aluminum.
“We will support our workers, our businesses and our industry with whatever it takes for as long as it takes,” Champagne said.
The tariffs are a response to the U.S.’ 50% tariffs on several Canadian goods and come after talks broke down, with President Trump telling the country to “fall in line” or face “far worse” consequences.
Those consequences could include new 50% tariffs on Canadian vehicles, auto parts and steel by Jan. 1, 2027.
Trump has accused Canada of ripping off American farmers and driving American companies out of business, but Michigan industries see it differently.
“This is a five alarm fire for the agriculture industry, and we need a real change in our trade policy so we can turn that around,” Mark Fisk, a spokesman for the Michigan Smart Trade Alliance, said.
The Michigan Agribusiness Association has said Michigan farmers depend on the $1 billion in trade they do with Canada, which support 6,300 jobs.
“Wheat products have dropped, soybean exports have dropped, cherry exports have dropped,” Fisk said. “You go across the board and honestly, there’s many people in the agriculture industry who believe we are on the brink of a financial collapse and that is in large part due to the tariffs.”
Lucerne International in Auburn Hills builds parts for the automotive industry and are already feeling the tariffs.
The company scrapped plans last year for a $50 million plant in direct response to tariffs.
“We’ve actually seen a lot of programs that we were working on in the automotive industry either stalled, put off a little or completely canceled,” Lucerne CEO Mary Buchzeiger said. “I think there’s just opportunities left and right that we’ve lost because of this changing regulatory environment that we live in right now.”
Buchzeiger said Canada is a part of their ‘factory floor.’
“We’ve built that for the last 30 years,” she said. “It’s not something that you can just strip away overnight.”
The industries are urging Congress to step in to stop the back and forth and provide a reprieve and stability for the economy.
“Michigan manufacturers support the goals of fair trade and stronger domestic production, but they also need certainty,” John J. Walsh, president and CEO of the Michigan Manufacturing Association, said. “The continued tariff dispute with Canada, one of Michigan’s largest trading partners, creates challenges for businesses that depend on closely connected supply chains. We encourage a swift resolution that advances U.S. manufacturing competitiveness and economic growth.”
Michigan House Speaker Matt Hall (R-Richland Township) supports what Trump is trying to achieve, likening the back and forth to the negotiations surrounding the Gordie Howe Bridge.
“The Canadians are really taking advantage of the automotive industry, they’re hurting our auto workers,” Hall said. “You look at what they’re doing to the dairy farmers, they’re boycotting American products on the shelves, including liquor, and I think we were very close to getting a deal that opened up those markets, and opened up the American markets.”
Hall said any deal has to be reciprocal.
“Both sides have to lower their tariffs and make a deal, and I think we were very close, and I have confidence that President Trump will get the Canadians back to the table and make an equal deal,” Hall said.
