Tariffs cost Michigan businesses billions as inflation persists
President Donald Trump flew to a General Motors plant in Milford, Michigan, on July 30, where he toured a collection of new vehicles and autographed a white Corvette commemorating America’s 250th anniversary. During the visit, he predicted that “it’s amazing what tariffs will do for General Motors” and told supporters that “Michigan is thriving.”
The economic picture in the state contradicts the president’s characterization of a thriving economy, according to the Associated Press. Tariffs have cost businesses in Michigan and across the country billions of dollars while helping to stoke inflation that has continued to run hot, despite Trump’s assurances that his business background would wipe it out.
The University of Michigan’s median one-year inflation expectations stood at 4.6% in July, according to data released the same day as the rally, reflecting persistent household concern about rising prices.
Many Americans believe tariffs have pushed prices higher and the war in Iran has increased gasoline prices, hurting consumer confidence in the economy while keeping Trump’s approval ratings low, the AP reported.
Trump’s visit comes as Michigan prepares for its midterm elections, where the state’s economic conditions and the impact of trade policy are expected to be significant issues. The president’s message that “Michigan is thriving” contradicts data showing business costs and inflation across the state, according to the AP’s analysis.