Canada is imposing huge tariffs on a variety of U.S. products, as a response to President Trump’s recent series of 50 % tariffs on certain Canadian goods.
And a coalition of business groups says Michigan is feeling the brunt of the trade war.
The Michigan Smart Trade Alliance champions good trade relations with other countries, especially Canada.
The group’s Mark Fisk says, in just one example, some parents got a good taste recently of what the current tariffs meant for returning students.
Interview edited for length and clarity.
Mark Fisk: For many Michigan families, this time of year means back to school shopping. And, unfortunately, due to the increased tariffs, it also means higher costs. Many basic school supplies, from pencils and crayons to binders and folders, are much more expensive due to the tariffs.
Quinn Klinefelter, WDET News: How high of a price increase are we talking?
MF: We’ve seen double digit increases for many, many items. Rubber erasers are up, pencils and crayons are up, backpacks are up, on and on across the board. Scissors, binders, they’re all up. And that is in line with general cost increases due to the tariffs. No state has been hit harder than Michigan because of our current trade policies. That has meant really bad news for families, retailers, farmers and small businesses.
QK: How are you tying the increased tariffs to this increased price in school supplies?
MF: We simply did an analysis of the before and after. The picture that emerges is very, very clear. The tariffs are having a huge increase on not just school supplies but clothing, soccer balls and all kinds of ordinary items that families need as they go back to school. And that is bad news for families, bad news for retailers, and bad news for businesses.
QK: And the data that you’re gathering this from, if I understand you correctly, says that tariffs have increased by “X” percent and these prices have increased as well. So you’re that’s how you’re tying those together?
MF: That is exactly right. And, again, no state’s been hit harder than Michigan by the current trade policy. It’s hurt our tourism industry, Quinn. We’ve had reduced foot traffic because of some of the trade wars and the tensions between ourselves and Canada. And that tourism industry fuels mom and pop businesses like restaurants, hotels, motels, gas stations. The current trade policy has been a disaster for Michigan families.
QK: So, in your group’s view then, what would you see as the remedy for this?
MF: We need Congress to act. We need Congress to take the reins and begin enacting smart, consistent trade policies. That means trade policies that lower costs instead of raise costs, trade policies that create jobs instead of kill jobs. And we need a trade policy that preserves our relationship with Canada. Canada’s a top export partner for the nation and for Michigan. We have a long-standing partnership with Canada and it works better for businesses, for everyone, if we are working together in partnership on trade rather than in a trade war with tensions and higher costs.
QK: Your alliance has been known for trying to protect Michigan’s trade relationship with Canada. It’s no secret things are a bit tense on that front right now, since the president launched new tariffs recently, basically on his own. You mentioned Congress reining them in, but do you see anything truly on a congressional or any other level that can actually affect what tariffs the President wants to impose or doesn’t want to?
MF: We have traveled all over the state with the Smart Trade Alliance. And I think it begins with getting out there and listening to the impact that the tariffs are having on businesses, on agriculture, hotels and restaurants, on the retailers. And then we have to look at working together in a bipartisan fashion to enact trade policies that give our economy a shot in the arm. Instead of the current approach, the erratic approach, which is shooting ourselves in the foot.