Donald Trump heads to Michigan for 100-day rally — but surging job losses in the auto heartland await him

As US President Donald Trump celebrates his first 100 days in office, he is heading to Michigan for a rally, marking a pivotal moment in his bid to energise his base in a key battleground state. Michigan, a state that flipped from the Democratic to the Republican Party in the 2024 election, is facing a range of economic challenges, especially within its critical auto industry. The state, known as the birthplace of the American automotive industry, particularly through Detroit, is grappling with rising unemployment, job losses, and an economic slowdown.

Michigan: The birthplace of the American automotive industry

Michigan, particularly its largest city, Detroit, holds a significant place in the history of the American automotive industry. The state’s pivotal role in the rise of automobiles revolutionized not just transportation, but also manufacturing and the global economy. Detroit, often referred to as the “Motor City,” is home to the iconic “Big Three” automakers: Ford, General Motors (GM), and Stellantis (formerly Chrysler). These companies have played a central role in shaping both the state’s economy and its cultural identity.

The big three: Ford, GM, and Chrysler

Detroit became home to the “Big Three” automakers — Ford, General Motors (GM), and Chrysler. These companies not only revolutionized the automotive industry but also helped to shape the broader economic and cultural landscape of Michigan and the United States. Over decades, the Big Three drove innovation in automotive design, labor practices, and production, reinforcing Michigan’s status as the epicenter of the global automotive industry.

Challenges facing Michigan’s economy and auto industry

Despite its historical prominence, Michigan is facing serious economic challenges, particularly in its automotive sector. Rising unemployment and a decline in manufacturing jobs have become major concerns. In March, Michigan’s unemployment rate spiked by 1.3 percentage points to 5.5%, well above the national average of 4.2%. This marks the third consecutive month of rising unemployment, signaling deeper problems in the state’s labor market.

Impact of Trump’s tariffs on Michigan’s manufacturing sector

Trump’s trade policies, especially his 25% tariffs on imported cars and auto parts, have directly impacted Michigan’s vital auto industry. The manufacturing sector, a key contributor to Michigan’s economy, has suffered job losses as a result of these tariffs. In March, the state saw a loss of 5,000 manufacturing jobs, further exacerbating Michigan’s unemployment issues. Also, other sectors, including professional services, have also seen declines in employment, highlighting the widespread economic strain.

Detroit’s rising joblessness and economic struggles

The Detroit-Warren-Dearborn Metropolitan Area, Michigan’s largest urban region, has been particularly hard hit. The jobless rate in this metro area rose to 5.3% in March, and employment fell by 22,000 over the past year. This increase in joblessness reflects the broader economic struggles facing Detroit, traditionally a key economic engine for Michigan. As manufacturing jobs have dwindled, Detroit’s once-booming auto industry has slowed, contributing to the region’s economic challenges.

Trump’s plan to offer relief to the auto industry

In response to these challenges, President Trump is expected to announce plans to offer some relief to automakers by signing an executive order to relax his 25% tariffs on imported vehicles and auto parts. This move is seen as a significant reversal of Trump’s previous policies, which had been criticized for raising production costs and potentially harming US auto manufacturers. According to the White House, the goal of the executive order is to create more domestic manufacturing jobs and to stabilize the auto industry in Michigan, a state heavily dependent on automotive production.

Expectations from Trump’s tariff relief

The executive order is expected to introduce changes in how the tariffs are enforced, including preventing multiple tariffs from being applied to foreign-made vehicles and reducing tariffs on imported parts used to build cars domestically.