Professor: Michigan To Feel Impact Of Chinese Trade War

The United States is now imposing tariffs on $34 billion of Chinese imports. Beijing immediately responded with the same 25% tariff. Sheila Ronis is a Distinguished Professor of Management at Walsh College in Troy and warns the tariffs will directly affect the big three automotive companies here in Michigan.

“All of the big companies that Michigan depends on from General Motors to Ford have global supply chains,” Ronis explains. “Those are the realities in today’s world. And those (tariffs) can only hurt everyone in the auto industry.”

Ronis warns agriculture will also feel the pinch. Regarding steel, she says even if all of it was produced in the United States, there still might not be enough to meet our needs.

Chinese officials are calling the tariffs the start of the “biggest trade war in economic history.” The Commerce Department says the May trade deficit, the difference between what America sells and what it buys in foreign markets, fell 6.6% to $43.1 billion. It was the smallest imbalance since October 2016. However, the trade gap between the U.S. and China increased sharply.

The Associated Press contributed to this report.