Michigan Automakers’ Paychecks Could Be Affected By Trump Tariffs

More trouble in paradise for the automotive industry as things continue to become more heated between the United States and foreign countries as President Donald Trump continues to push forward with tariffs. He has even imposed reciprocal tariffs in response to any countries that have tried to fight back. This hasn't taken a toll on anyone as much as the automotive industry.

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The auto industry was already struggling to get cars off the lot as they were becoming more expensive, now its even worse as the tariffs continue to roll in. The 25% tariffs were causing enough problems with supply chain costs and not enough space for the inventory they already had. With less cars going off the lot and inventory piling up, the auto industry is losing money left and right.

Trump Tariffs May Affect Michigan Automakers' Paychecks

For the most part they have been combating the tariffs by laying off workers to try and reduce the amount of product they are producing while also saving some money. They do have plans to bring those workers back at a better time for the company but that may never come. Now, they are looking for more ways to manage the tariffs as they continue to be on the hot seat.

Michigan automakers' paychecks may begin to look a little different as the tariffs take their toll on the industry and the amount of profit they are able to make. The Anderson Economic Group estimates a $5 billion loss in combined revenue for all of the Detroit automakers which will be reflected in paychecks.

If the profits continue to fall than both UAW and salaried employees will see changes in their paychecks. It's said that if this is the case than UAW workers could see their profit-sharing checks be reduced anywhere from $1,000-$4,000. In addition, salaried employees could see changes or eliminations of their bonuses due to the loss in profit. Below are a list of the states that are most affected by the tariffs.