Trump defends auto tariffs at Michigan GM plant amid slowing job growth

President Donald Trump addressed workers at General Motors' Milford plant in Michigan, asserting that the tariffs imposed on imported auto parts are revitalising the U.S. auto industry and encouraging foreign manufacturers to locate production in the United States. He said the policy imposes a fee on vehicles built abroad while offering tariff-free treatment to those produced domestically.

The White House cited a $6 billion investment by GM and additional spending by Ford, Stellantis and Detroit Diesel as evidence that the approach is working. However, data from the Bureau of Labor Statistics show Michigan added only about 500 jobs in the year to June, far behind states such as Texas, which added more than 177,000 jobs in the same period. The state's unemployment rate rose to 5.1% in May, placing it among the highest in the country.

Trade tensions with Canada are also a factor. The United States currently levies a 25% tariff on non-U.S. parts used in Canadian-assembled passenger vehicles and on certain steel imports, with a possible increase to 50% planned for August. Canada has responded with a 25% tariff on U.S. vehicles and parts that do not meet USMCA rules.

"The rule is straightforward: Build your trucks or cars outside the United States and you'll pay a fee for the right to sell them here and profit," Trump said. "Build your plant in Michigan or anywhere else in America and produce the vehicles right here at home, and you'll face no tariff at all," he added.

Trump concluded by praising his administration's support for Michigan autoworkers and attributing ongoing economic challenges to policies he described as favoring global interests over American workers.