US President Donald Trump and the Wall Street Journal’s opinion section are locked in a fight over tariff policy again. The Journal published an editorial warning that auto-heavy Michigan would be hurt by tariffs on imports from Canada and Mexico, which Trump is threatening to impose once more.
The editorial cited studies showing that building a full-size SUV or pickup truck in the US would increase costs by $9,000 and $8,000, respectively. However, Trump disputed these estimates, making false claims about the impact of tariffs on auto manufacturing in Michigan.
Under free-trade agreements between the US, Canada, and Mexico, automakers have long operated as if North America is a single market, with parts and vehicles moving freely across borders during assembly. Despite Trump’s tariff threats, no automaker has dropped plans to build plants in these countries.
Tesla, run by Trump ally Elon Musk, has not moved ahead with its previously stated plans for a plant in Mexico. Stellantis, which makes vehicles under Jeep, Ram, Dodge, and Chrysler brands, is restarting production at a closed plant in Illinois due to existing labor agreements, not in response to Trump’s tariff threats.
General Motors CFO Paul Jacobson noted that long-term tariffs might force the company to re-examine its manufacturing footprint, but emphasized it would not be a quick or light decision.
Source: https://edition.cnn.com/2025/02/26/business/tariffs-trump-wall-street-journal/index.html