Trump travels through Michigan with economic message and tariff threats

Republican presidential candidate Donald Trump made a two-stop trip to Michigan on Friday, touting an economic message to the 2024 battleground state that he would cut the corporate income tax and would strengthen the domestic auto industry through an aggressive set of tariffs on foreign cars.

During a brief town hall meeting at Macomb Community College in Warren, Michigan, Trump answered a series of questions from attendees who identified themselves as auto workers, saying he planned to impose high tariffs on any attempt to import cars into the United States, targeting Chinese competition. but also those of a commercial ally, Mexico.

“They have to pay the price for this,” Trump said at the town hall, which lasted about half an hour and drew 12,000 people, according to a campaign spokesperson. U.S. Sen. Marsha Blackburn, R-Tenn., moderated the event.

Warren’s visit was preceded by a stop in West Michigan, where Trump — the Republican presidential nominee who faces Democratic rival Kamala Harris in the Nov. 5 general election — spoke with supporters in a manufacturing plant located in suburban Grand Rapids.

In those remarks in Walker, Trump also focused on plans to boost manufacturing employment, saying he intended to cut the federal corporate tax rate from 21% to 15%. , but only for companies that manufacture their products in the United States. said it would also impose tariffs of 100% to 200% on cars manufactured in Mexico and intended for import into the United States.

Such a plan, however, could run afoul of the U.S.-Mexico-Canada trade deal negotiated by Trump and touted as one of his administration’s major achievements before he left office. after his first term. It allows automobiles manufactured in Mexico to be imported into the United States without any customs duties, provided they follow certain rules regarding where the car is assembled and the origin of its components and materials.

Many automakers currently have factories in Mexico, taking advantage of lower labor costs and trade provisions negotiated under the Trump presidency as part of the U.S.-Mexico-US trade deal. Canada.

More: In Michigan, Trump calls for cutting corporate taxes and raising tariffs on foreign goods

More: Watch Replay: Former President Donald Trump Holds Town Hall in Warren

To Warren, Trump also indicated he would pursue plans to raise tariffs and cut taxes with or without help from Congress. “If they don’t do it, I have the permission and the power to do it myself,” he said.

Although a government has certain powers to increase tariffs on certain products, especially if it is considered a matter of national security, income tax rates are set by law. Trump’s plan to tie tax rates to the location of production also leaves aside the very real question of where the materials and components needed for that production come from if they are not readily available in the United States. United.

But Trump repeatedly referred to tariffs, calling them “a nice word if used correctly” even though tariffs are costs typically passed on to consumers, leading to higher prices.

Trump is moving more toward the town hall format. Last week, he hosted one in Flint with Arkansas Gov. Sarah Huckabee Sanders.

Ahead of Trump’s visit Friday, Harris issued a statement saying Trump “makes empty promises after empty promises to American workers, but never keeps them” and noted that during his tenure, the United States has lost hundreds of thousands of manufacturing jobs, although much of that has happened. due to closures due to the COVID-19 pandemic.

In Michigan, the number of auto industry jobs fell during Trump’s term, even before the pandemic. Auto manufacturing jobs have grown steadily in the state during President Joe Biden’s term, although employment at parts suppliers has declined.

Harris, while promoting her own plans to provide tax relief to first-time home buyers and small business startups, has repeatedly said Trump’s plans would increase costs for consumers.

“American workers deserve a leader who keeps his promises and stands with workers when it matters,” she said. “As president, I will bring auto worker jobs back to this country and create an opportunity economy that strengthens manufacturing, strengthens unions, and builds prosperity and prosperity. security for America’s future. »

Trump, however, called Harris “incompetent” and vowed to undo what he and other Republicans call a “mandate” from Biden to force the American public to buy electric vehicles.

No such mandate exists, but the Biden administration has adopted rules that, if left in place, would virtually require that more than 60% of all new cars sold by 2032 be electric vehicles, or risk heavy fines for car manufacturers. The policy does not specifically say that automakers would have to sell electric vehicles if they could find other ways to meet emissions standards.

“They have an electric mandate. Every car will be electric, they say,” Trump falsely said. “We will put an end to it.”

Trump also said he would eliminate the standards on his first day in office, but that such a change would have to go through a lengthy bureaucratic process before being adopted.

Macomb Community College was filled with hundreds of Trump supporters standing to hear the former president. Messages from the Trump campaign played from the jumbotron urging them to vote early as attendees walked past a table encouraging them to register to cast the election and request an absentee ballot.

Trump responded to a personal question asked of him by a Warren attendee. When asked what his favorite car was, he recalled how his father, real estate developer Fred Trump, bought Cadillacs.

“All he loved was Cadillac. (…) It’s a very good car,” he said. “My father loved Cadillacs and that’s enough for me.”

(This story has been updated to add new information.)

Contact Todd Spangler: [email protected]. Follow him on Twitter@tsspangler.