A must-win midterm state is the real loser of Trump's Canada trade war

By Fox News · Fox News

President Donald Trump's escalating trade fight with Canada could deliver an economic blow to one of the country's most closely watched battleground states, potentially raising costs for automakers and prices for consumers. Michigan, home to a fiercely contested U.S. Senate race this November, is particularly vulnerable because its auto industry depends heavily on a cross-border supply chain with Canada. America's northern neighbor received roughly $21.2 billion worth of Michigan exports in 2025, about 36% of the state's total, mainly vehicles and parts, according to the Michigan Department of Transportation . David Clement, policy director of the free market nonprofit Consumer Choice Center, warned the costs of tariffs could ultimately reach Michigan drivers. "How you see this as a Michigan consumer is higher prices on the dealership lot," Clement told Fox News Digital, describing tariffs alongside already-elevated living costs as a "double whammy." 5 STATES COULD BE THE BIGGEST LOSERS IN TRUMP'S TRADE WAR WITH CANADA, EXPERT WARNS Those concerns come as Trump has intensified his trade dispute with Canada. He imposed an additional 50% tariff on certain Canadian products earlier this year, and the administration has since barred certain Canadian products from entering the U.S. beginning Sept. 29. Clement said Michigan ranks among the states most exposed to the dispute. "Michigan, in terms of ranking all of the states in their export vulnerability in the trade war, sits at around seventh," he said, pointing to equipment, machinery and the auto industry as areas of concern. REPUBLICANS JUST GOT A POWERFUL NEW PLAYBOOK FOR THE BATTLE FOR CONGRESS. HERE'S WHAT'S INSIDE That vulnerability is compounded by how frequently auto parts cross the border before a vehicle is completed. "Most Americans don't know that a single component on a U.S.-assembled vehicle can cross the border upwards of eight times before it's actually completed," Clement said. "When you are tariffing a…