Trump's tariffs could lead to a recession, warns Slotkin

U.S. Senator Elissa Slotkin has raised concerns about potential negative economic effects if new tariffs proposed by the Trump administration take effect on April 2. Slotkin, a Michigan Democrat, warned that these tariffs could lead to a "self-inflicted recession." She spoke at Wayne State University, saying that the current economic trends are not favorable. Slotkin expressed that while tariffs can be useful for national security, applying them to allies like Canada makes little sense. Earlier this month, President Trump placed a 25% tariff on goods from Canada and Mexico, as well as on aluminum and steel from other countries. He also introduced a 20% tariff on China. Slotkin highlighted that rising costs and layoffs create a lack of consumer confidence. The Federal Reserve's GDPNow model indicates that the United States could see a 2.4% decline in economic growth in the first quarter of 2025. Although some companies, like General Motors and Ford, received exemptions from the tariffs, many smaller businesses struggle to obtain similar benefits. Colin Bird, the consul general of Canada in Detroit, added that the United States-Mexico-Canada agreement (USMCA) has been successful in creating record investments. Bird argued against revisiting previous negotiations and called for new discussions on improving competitiveness. Sandy Baruah, CEO of the Detroit Regional Chamber, noted that the uncertainty of tariffs is harming businesses. He compared the situation to the disruption caused by the COVID-19 pandemic. He also voiced concerns over U.S. governors being open to partnerships with Chinese automakers. Slotkin has plans to reintroduce legislation that would ban Chinese vehicles from being sold in the U.S., citing security concerns over data collection. She believes controlling vehicle data is critical and emphasized the need for bipartisan support in this issue.