Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Tariffs, supply-chain pinch points and rare earth licensing raise risks for Michigan auto jobs, experts say
Summary
University of Michigan and Federal Reserve Detroit analysts told the CREC that tariffs and related policy actions could cut U.S. light-vehicle production, cost Michigan thousands of jobs and create new supply-chain vulnerabilities, including rare-earth processing controlled by China.
Speakers at the CREC on May 20 warned that new tariffs and retaliatory measures could reduce U.S. light-vehicle production, increase vehicle prices and raise substantial risks for Michigan's auto-dependent labor market.
Gabe Ehrlich of the University of Michigan's RSQE presented a model of tariff effects that accounted for consumer substitution, higher domestic production costs and retaliatory tariffs. "We estimate that the tariffs will reduce U. S. Light vehicle production by nearly 200,000 units per year," Ehrlich said, noting an estimated average effective tariff on imported vehicles of about 21.6 percent and an…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
