Every day $1bn worth of goods crosses the river dividing Detroit, Michigan, and Windsor, Ontario, two largely blue-collar US and Canadian cities that have come to act as one in the creation of North America’s auto industry. News this week of Donald Trump’s escalating trade spat with Canada has everyone worried. Political and economic leaders and observers labeled the move an act of “hubris” , blamed Trump’s “ego”, and called the escalation “insanity”.
But many are hoping that Trump’s plans to impose 50% tariffs on Canadian goods from 1 January, covering everything from automobiles to honey to hockey sticks, will prove another empty threat and cite the upcoming midterm elections as a pivotal reason the plan may be scrapped. Control of the US Congress hangs in the balance and will almost certainly be decided by several close Michigan races. It also comes just two months after polling highlighted Michiganders’ fatigue with and opposition to the president’s unprecedented tariff program.
By a 63%-31% margin, residents here oppose tariffs on Canadian goods, according to a June Epic-MRA poll, including 35% of Republicans. Meanwhile, nearly 75% of Michiganders said the tariffs are fueling high prices. Trump doubling down on an unpopular policy deep into election season is viewed by many observers as a gift to Democrats, and there is a real possibility that it contributes to a midterm loss for the Republicans.
Meanwhile, there seems to be little upside for Trump. Regardless, Michiganders have already suffered disproportionately as they pay on average over $3,200 annually for tariffs, or about 142% more than the rest of the country, because of the state’s shared border with Canada. The Canadian economy would also take a major hit if the tariffs are imposed, said Patrick Anderson, a Michigan-based economist with the Anderson Economic Group.
This critical upper midwest swing state has picked the presidential winner in five consecutive elections, going from Barack Obama to Trump to Joe Biden and back to Trump. Democrats’ chances to retake the Senate rest heavily on the Democratic nominee Abdul El-Sayed beating Trump ally Mike Rogers in the 3 November general election race. Rogers has supported the tariffs, but so far has been silent on the latest escalation.
The tariffs and the unpopular Iran war’s contribution to inflation represent a “double hit” for Republicans, Porn said, and Trump is handing ammo to a particularly adept candidate in El-Sayed. He has energized people with his anti-establishment, populist political vision, and a no-holds-barred delivery. Trump’s low popularity is an anchor around Rogers’ neck.” In a statement, El-Sayed hammered Trump and Rogers, saying that the president “cares more about his ego and saber-rattling than addressing the affordability crisis.
Extract — continue reading at the source.
