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Today โ€” 3 April 2025Main stream

'I think you'll see some very significant pain.' Auto industry braces as Trump announces tariffs

2 April 2025 at 22:58

All eyes were on President Donald Trump today as he announced a 10% tariff on all imports. It's been branded as 'Liberation Day" by the White House.

In the Rose Garden, Trump invited Brian Pannebecker, a Macomb County man and the founder of Autoworkers for Trump 2024, to the stage.

"My entire life I have watched plant after plant after plant in Detroit sitting idle, under-utilized," Pannebecker said, just moments after Trump made this announcement.

"Effective at midnight, we will impose a 25-percent tariff on all foreign-made automobiles," Trump said.

Local auto manufacturers have already been navigating the new tariffs, and I went to talk to one in Sterling Heights. We're also getting new analysis about what consumers can expect to pay if they're in the market for a new car.

FULL INTERVIEW: John McElroy of Autoline discusses the possible impacts of tariffs FULL INTERVIEW: John McElroy of Autoline discusses the possible impacts of tariffs

Citic Dicastal is the largest manufacturer of aluminum wheels in the entire world, and because their products are made of aluminum, they're already feeling the effects of those tariffs.

For Dale Hadel, the Director of Sales, the tariffs have already been a reality.

"We're paying it on aluminum wheels. We'll be paying it on imports from Mexico. We'll be paying it on imported material from Canada. We'll be paying it on the final product coming in from China," he says.

Hadel tells me Citic Dicastal is headquartered in China.

"When you think about a 25% tariff, and let's say aluminum, just is $1 a pound, now it's $1.25 a pound, and that's a 30-pound wheel, you can do the math," he says.

I asked him what his biggest concern is right now.

"My fear is that this will slow down vehicle sales if there's a big bump in pricing that the automakers need to pass on to the consumer," Hadel says.

So, let's talk about that. Lansing-based Anderson Economic Group published a new report showing major increases per car.

"For American cars, and I'm talking about cars assembled in North America, $2500 the low end, $10,000 at the high end," says Patrick Anderson, CEO of the Anderson Economic Group.

And he says these are conservative estimates. For imports, it could reach $20,000 per car. And how does Michigan fare compared to the rest of the states in the US when it comes to these tariffs?

"There's no state that's more exposed than Michigan to tariffs on automobiles," says Anderson. "Now we're, we are - literally the epicenter of tariff effects is probably in the middle of the Ambassador Bridge between Detroit and Windsor."

"The auto industry spent the last 20 years trying to find low-cost countries or low-cost content locations where they can have a competitive advantage by manufacturing, which has been enhanced by USMCA and all the incentives to locate there," says Hadel.

One of the theories right now is that there will be pain in the short term, but in the long term, there will be benefits. I asked Hadel if he agreed with that.

"I don't see that. I see there'll be, at least for the 5 to 7 year duration in front of us, I think you'll see some very significant pain," he says.

Before yesterdayMain stream

'Thank you, all': 7-year-old girl attacked by dogs in Inkster gets surprise from city

21 March 2025 at 01:47

A 7-year-old girl who was attacked by two unattended pit bull dogs earlier this week in Inkster received a sweet surprise from city officials.

The brutal attack happened on Monday in the area of John Daly and Florence streets.

Previous coverage: 7-year-old girl left injured after dogs attacked her in Inkster 7 year old girl recovering from a dog attack in Inkster

The girl was rushed to the hospital by police officers, which was captured on body camera video.

A parade of police officers and the mayor surprised young Amariee Brown with flowers, gifts and balloons Thursday at her home in Inkster.

Thank you, all for what yall did for me, Amariee said.

Amariees mom Tiffany Brown explained what it was like to experience the brutality.

It was scary. It was devastating to me because to see my baby all bit up and stuff, that hurt me because people just dont care, she said.

Tiffany Browns boyfriend Leiman Young was the first to arrive.

I jumped out with my work hard hat and just started hitting them and hitting them. And then I grabbed her and I threw her in the back seat as quick as I could and I started back down the street. And by the time I got here the police was here, Young said.

They pulled up right behind my car and they seen her condition. And they just grabbed her and put her in another police car and rushed her to the hospital.

VIDEO: Officer helps child injured by dog

Amariees mom has a message for dog owners.

I just want to say that everybody with a dog needs to have control of their dogs. And just watch them. Cause its a lot of little kids that roam the neighborhood, she said.

What could the future of EV infrastructure in Michigan?

4 March 2025 at 23:25

Remember when electric vehicles were all the rage? During the Biden administration, Congress allocated $5 billion to building out a nationwide EV-charging network.

Of that, Michigan was promised $110 million, half of which has already been allocated. The other half is currently in limbo after a memo from the Trump administration paused EV infrastructure deployment plans.

So, I set out to see how the perception around EVs has shifted in both the public and in the auto industry.

I sat down with EV driver Rene Dell and UAW union steward and truck driver Terrance McFadden to understand how much the landscape has changed for real metro Detroiters.

Can you give me a sense of in your mind how much things have changed over the past couple of years?" I asked Dell.

I feel like the number of EVs on the road continues to increase. And I felt like the number of chargers was increasing. I was seeing more and more chargers. More chargers were popping up on my charging map, and I was hopeful that this was going to trending up northern Michigan. because its more remote areas that seem to lack the charging facilities," Dell said. "And so now that its come to a halt, Im wondering what the future of the infrastructure in Michigan is going to look like.

McFadden delivers parts to auto manufacturing plants and frequently interacts with auto workers. He remembers the early days of the push to ramp up EV manufacturing in Michigan.

What a lot of those people were feeling was fear because they didnt know where the market was going," McFadden said.

He says he thinks people will oppose deadlines to buy EVs and hed like to see the automakers listen to the market when making production decisions.

I think that as far as importance goes, EVs could potentially be the lifeblood of our city. Well just go from the Motor City to the electric Motor City," McFadden said. Being the Motor City, the world does watch us in terms of vehicles and we have to remain on the cutting edge. And I believe that it really does require the metro Detroit market as well as the state of Michigan to continue to have the infrastructure so that people will invest in the technology, so that people will buy the electric vehicles.

I also talked to Marrick Masters, a professor of business emeritus at Wayne State University.

Marrick Masters is a professor of business emeritus at Wayne State University.

"We were pretty hot and heavy about EVs a couple years ago. Can you tell me from your perspective how things have changed?" I asked.

Well I think what has happened is that there has been a rude awakening, if you will. And that companies have realized that the transition to EVs, and this is even before Trump came to office, was not going to be as smooth and rapid as they had thought," he said. "But the train has left the station, in the sense that the future will be EV. Whether its a combination in the shorter term of hybrids, plug-in electrical and battery-electrical vehicles."

"Any advice that you would give to Michigan, to Detroit, to the auto manufacturers about how to embrace the future of EVs?" I asked.

I would advise them to think about how they establish a competitive business without government assistance. And once they do that, they will be in a position to compete anywhere in the world. And until they do that, theyre going to find themselves increasingly at a disadvantage and at the mercy of changes in administration policies," he said.

Glenn Stevens Jr. is the executive director of MichAutoat the Detroit Chamber. They work with all auto industry stakeholders across Michigan and advocate for policy for the industry.

"What changed recently when it comes to the development of EVs?" I asked.

Well I dont think that the vehicle companies, suppliers and research institutions have changed the fact that theyre trying to develop better chemistries, better manufacturing processes. But what we do know in DC right now is theres a tremendous amount of change. And we know that federal funding for electrification projects is in question or on hold or on pause," Stevens said. "We know that the commitments that are going to be made to things like research institutions, thats a big concern because thats a huge part of what drives things forward. So I think youre right, there is a pause so to speak and I think there is some concern there.

He said government support and promotion did have an impact.

There was a rush. And maybe what we did was get a little bit ahead of what true market demand is. But it hasnt stopped. Market forces are going to work globally and we do know that the Chinese auto industry, which didnt exist just the other day, is a global threat to us both around the world and potentially here in North America that we need to be prepared for. And standing still is not an option.

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