Gov. Whitmer’s Protect and Defend Michigan’s Economy Speech as Prepared for Delivery

September 16, 2025

Contact: [email protected]

Gov. Whitmer's Protect and Defend Michigan's Economy Speech as Prepared for Delivery

LANSING, Mich. - Today, Governor Gretchen Whitmer delivered her Protect and Defend Michigan's Economy Speech, presenting a commonsense path forward for Michigan's economy. In a time of economic uncertainty driven by federal tariffs and troubling signs in America's manufacturing sector, it's more important than ever for elected officials, especially in Washington, to do what they can to protect their constituents from further economic pain. That's why it's critical for state legislators to do their job and pass a state budget swiftly to protect Michiganders from further disruption.

Since elected, Governor Whitmer has made clear that she will work with anyone to support Michiganders across the state. The governor has signed a record 1,512 bipartisan bills into law, the majority of which were signed under a Republican-controlled legislature, to make Michigan the ideal place for people to invest, live, and work. The governor introduced her budget over 200 days ago to lower costs, create good-paying jobs, grow our economy, fix the damn roads, improve academic results, and support Michigan seniors, and she and her administration have brought both houses of the legislature together dozens of times to make progress on a budget over the last six months.

With a focus on top priorities, this address laid out Governor Whitmer's vision to strengthen Michigan's economy, ease uncertainty, and lower costs for working families through partnerships with both sides of the aisle.

Please see below for her remarks as prepared for delivery.

----

Hello! I want to acknowledge all our guests, the members of my cabinet, and legislators with us today. We're here to talk about the state of the economy, specifically: local jobs, national tariffs, and the state budget.

Middle class jobs are the backbone of our economy. They're how Michigan became a manufacturing superpower. Generations of hardworking Michiganders built cars, furniture, and electronics. Good jobs that supported the American Dream.

No matter who you were, you could raise a family, own a home, send your kids to a great school, live in a safe community, and retire comfortably. That was the deal. It still ought to be. Our future rests on our ability to create those jobs and keep costs low.

That's why I went on an economic mission that led to the creation or retention of nearly 1,000 good-paying jobs in Michigan… 450 in Auburn Hills, 200 in Wixom, 150 in Zeeland, and a $200 million boost to our state economy.

It's why I went to the Oval Office to secure a fighter mission for Selfridge Air National Guard Base in Macomb, protecting 30,000 jobs and $850 million of statewide commerce.

It's why I've worked tirelessly to invest in people and places so we can compete for projects. And it's why I signed over 1,500 bipartisan bills on the kitchen-table issues… jobs, child care, housing, fixing our roads and bridges... All to support our state goal: helping people 'make it' here in Michigan.

Right now, uncertainty undermines our ability to create those jobs. Uncertainty makes it difficult, if not impossible, for businesses to plan ahead. Uncertainty pushes family finances to the brink. Uncertainty costs us time, money, opportunities, and jobs.

There's an old saying that when the U.S. catches a cold, Michigan gets the flu. And right now, there are undeniable signs of an ailing economy:

• Stubborn inflation and stagnating wage growth.

• Plummeting credit scores and debt piling up, especially for young people.

• Creeping unemployment with 42,000 manufacturing jobs lost nationwide since April and more job seekers than open jobs for the first time since early 2021.

This is a man-made storm of uncertainty that hits Michigan hard. While I'm doing everything I can to protect Michigan and create jobs, I can't do it alone.

Where is this uncertainty coming from? Two sources. First, and most significantly, chaotic national tariff policies. And second, our state budget. Today, I want to talk about what we can and must do on both fronts.

If we work together, we can reduce uncertainty, grow our economy, and create jobs. In an uncertain world, we can make Michigan the best bet.

First, tariffs. Over the past nine months, the federal administration has slapped tariffs on nearly every country, including our strongest allies. They have negotiated some deals, retracted others, and some just fluctuate depending on the day, stoking massive uncertainty around the world.

Now, nearly every time something crosses an American border, it is subject to a tax that's not actually paid by another country, but by a company or you on the things you buy. Right now, they range anywhere from 10 to 50%, with steepest rates on aluminum and steel. And Michigan's two largest and most critical industries, autos and agriculture, are hit hardest. MDARD's report yesterday confirmed it-our farmers are hurting.

We're already seeing rising costs in Michigan because of tariffs. In July, I asked state departments to investigate and report the updated impact of tariffs on Michigan's economy. Everything costs more… clothes, school supplies, fresh fruits and veggies:

• Ground chuck is up over a dollar per pound since last year.

• A pound of coffee costs 40% more.

• That new mattress or couch you're thinking about buying are more expensive.

I've heard from thousands of fellow Michiganders about how tariffs are affecting them.

• Aimee from Houghton stopped her retirement contributions because saving for tomorrow is impossible when living today costs too much.

• Dana, a teacher from Berkley, is piling up credit card debt to make ends meet.

• Chris from Clinton Township said he stays home, eats less, and suffers through the hot summer.

Michigan understands the negative consequences of unfettered trade with other countries that don't play fair. Decades of offshoring and outsourcing shipped hundreds of thousands of good-paying, middle-class jobs overseas and shuttered hundreds of factories. The ripple effects were devastating. Fewer people, empty main streets, crumbling roads, and shrinking schools.

We all want to bring good-paying, middle-class manufacturing jobs back home to America. When used strategically and precisely, tariffs CAN encourage companies to build and create jobs in America and benefit a place like Michigan.

But you can't capriciously swing the tariff hammer at every problem. I hear this from employers in Michigan and in every meeting on the investment mission to Japan and Germany. Companies that have invested in Michigan for decades brought up uncertainty caused by our national tariff policy. They want to invest in Michigan, but tariffs are keeping them on the sidelines. Uncertainty breeds paralysis. And paralysis costs jobs.

No industry is more at risk from tariffs than our automakers and suppliers. 1.2 million Michiganders are employed in the automotive supply chain-that's 1 in 5 Michigan jobs. Canada and Mexico are our biggest auto trading partners, with car parts crossing both borders an average of 8 times.

The auto industry navigates tariffs under the United States-Mexico-Canada agreement, or USMCA. President Trump negotiated the USMCA during his first term and at a celebration in Michigan called it "the best agreement we've ever made."

But now, additional 25% tariffs have been slapped on foreign made auto parts, including those from Canada and Mexico. Even higher tariffs on steel and aluminum, two materials crucial for building cars, exacerbate the problem. While some goods are exempt under the USMCA, automakers are struggling to navigate the new tariff regime.

That's because manufacturers invest and plan 5 to 10 years out. Now, they can't. Uncertainty is crippling them. And with more Michiganders tightening their belts, fewer buy cars. Higher costs, lower sales, jobs at risk.

• The Anderson Economic Group says that the costs of Broncos, Suburbans, Jeeps, Dodge Rams, and others will go up by up to thousands of dollars.

• GM and Stellantis already reported losses of more than $1 billion each.

• The Wall Street Journal reports that Ford expects a $2 billion tariff hit to their bottom line.

• Fortescue paused plans for an electric vehicle battery factory in Detroit that would have created 600 jobs.

• For AlphaUSA, a small supplier in Livonia, costs are rising $250,000 every month due to tariffs on the nuts and bolts they use to make their components.

• Blitz Proto, a Michigan-based manufacturer, is losing clients because tariffs affect price estimates and timelines.

In some cases, they aren't just scaling back. With tariffs on Canada and Mexico higher than the ones on Japan, auto companies are considering building cars and products entirely overseas to pay one tariff on one product.

Dangerously ironic, the national tariff chaos does the opposite of the administration's goal. Companies are cutting, not creating jobs in Michigan. Costs are going up, not down. The price of a new car rises by thousands. Or your dollar won't go as far.

We all crave certainty. We want to know what's coming. We track when bills are due, what days the kids play sports, and where to shop for groceries. We rely on certainty in larger ways too… we like to know for sure that the roads we drive on are safe, the food we eat has been inspected, and the water we drink is clean.

Small businesses need certainty to hire workers, plan inventory, and grow. Michigan's Big Three, 26 OEMs, and thousands of auto suppliers need certainty. All businesses do. Right now, they don't have it, and we are paying the price.

I will continue to work alongside our businesses to persuade decisionmakers in DC to adopt a tariff structure reaffirming the USMCA… one that helps us compete and saves people money.

While a state can't control the national tariff rate, we can work together to provide certainty.

We must work together to get this done. Let's put new job-creating tools in our toolbox that will help us leverage our strong workforce and manufacturing heritage to compete against other states and countries. We need to do three things:

• 1) Make it easier to build factories and facilities.

• 2) Create and retain good Michigan jobs.

• 3) Make it easier to incentivize innovation in Michigan.

No tool is going to be perfect, but we have to do something to deliver more wins for Michigan. Because the competition is fierce.

Let's talk about the budget. While we can't control the global tariff war, we must do what we can to make life a little easier for Michiganders and reduce uncertainty. As Michiganders watch the news, they tend to ask a simple question-what does this mean for me and my family? Failing to get this done means more uncertainty, higher costs, and less jobs.

Take roads. Since taking office through the end of this construction season, we will have fixed more than 24,500 lane miles of road and 1,900 bridges, supporting tens of thousands of good-paying jobs. That's tens of thousands of drives to work, school, or the store every single day that are faster and safer.

But our current fix for roads, the Rebuilding Michigan Plan, is expiring. Nearly 10,000 good-paying Michigan jobs… skilled laborers, equipment operators, and small business owners could go away.

This is really about people. People like Jim Zmetcalf, a road worker from Jackson who attended the MITA rally two weeks ago here at the Capitol. He has a good job and can provide for his family. His work makes your commute safer. If we don't reinvest in our roads and protect jobs like Jim's, he will take a job in another state. His family will either follow him or be separated. Our roads will get worse. And when we finally do put money into our roads, we'll have lost critical expertise.

Another key area is education. We've made a lot of progress… closed the funding gap, fed all 1.4 million public school students free breakfast and lunch, tripled literacy coaches in schools, and put thousands more teachers on free paths to the classroom. Unfortunately, the school year started weeks ago, and our schools still don't have a budget.

All that progress is at stake. At the same time, we face a literacy crisis, as just a quarter of our 4th graders can read proficiently. That's unacceptable. We recently changed the law to use proven phonics-based reading strategies, but we need to keep going.

Finally, we need to fund public safety. Let's make sure our local first responders have the resources they need to reduce violent crime and keep Michiganders safe on the road, at school, and in their communities.

My job is to introduce and sign a budget. It's on the legislature to debate and pass a budget, and they need to get it done by the end of the fiscal year.

• 223 days ago, I introduced my budget recommendation.

• 125 days ago, the Senate passed their budget on time as they always have under Leader Brinks-that's three years in a row.

• 77 days ago, the statutory budget deadline came and went.

• 21 days ago, the House finally passed their budget. And let me be clear… that's not one I would ever sign.

My budget team will be in the conversations but putting up the votes and actually passing the budget is the legislature's responsibility. If we do this right, we can all win. We can govern-which means we all compromise:

• The budget can deliver on my priorities to invest in our kids, fix our roads, helps us compete, and keep people safe.

• It can deliver on the Senate's goals to protect Medicaid, feed kids at school, and support moms and babies.

• And it can deliver on the House's goals too-cut spending, fix local roads, and increase transparency.

If the legislature sends me a budget that includes these shared priorities, I will sign it. I've signed 6 balanced budgets… 4 with a Republican Senate and House and 2 with a Democratic Senate and House. Every time, we got it done. Both Leader Brinks and I can tell you that it's never easy but when the job is done, it's always worth it.

We should be proud that no matter how dysfunctional Congress gets-regardless of who's in charge in DC-the State of Michigan has balanced its budgets and gotten them done on time. That's the general rule here, regardless of who's in power. It's a stark reminder as we look at the next 14 days at what's happening in Washington and what we need to do in Lansing.

In this town, it takes 56 votes in the House, 20 votes in the Senate, and 1 governor's signature for a bill to become law. I know Leader Brinks is available. My team and I are ready to go. We can still do this on time, but the clock is ticking.

Michigan can model to the rest of the nation on how to work together to get things done. It's how so many of us were raised. I'm still guided by the values I was taught growing up in a bipartisan household with a Democratic mom and a Republican dad… decency, respect, and kindness.

When I was in the state senate, I worked with Governor Snyder to expand Medicaid. I could've said no or made unreasonable demands to score political points. Instead, we put politics aside and got it done because it was the right thing to do. Hundreds of thousands of Michiganders have health care today because we centered our desire to make a real difference in people's lives.

I know the world feels divided. We're living through a time of extreme rhetoric and rising political violence. We must remember that while we stand on different sides of the aisle, we all want the same things:

• Healthy and happy kids.

• Good paying jobs.

• Food on the table.

• Safe communities.

• A stronger Michigan.

Let's get the job done. Thank you.

###