Detroit business owners concerned over Trump tariffs

A small business in Detroit is thriving five years later after struggling through COVID restrictions during the pandemic in 2020. But after threats of tariffs from the Trump administration, Detroit business owners are now facing a possible challenge. 

The backstory:

FOX 2 first met small business entrepreneur Nadonya Muslim in 2020, after Governor Gretchen Whitmer allowed retail businesses to reopen under certain guidelines.

Five years later in 2025, that business is thriving.

Her boutique business is back on track, but when Nadonya heard the Trump Administration announce tariffs on several countries, including China and Mexico, she saw it as a potential road block.

"We get a lot of our products from overseas mainly China, Canada, Pakistan," she said.

What are tariffs?

Big picture view:

Tariffs are taxes imposed on imported goods that are paid by the importer. The purpose of a tariff is to raise the price of imported goods and services to discourage consumption and get people to purchase more local products to stimulate the nation's economy.  

The idea is to encourage more local production so that imported goods can be replaced by domestic products, raising revenue for the government. 

According to a report featured in the Journal of Economic Perspectives, it is common for U.S. presidents to introduce protectionist measures — like heavy tariffs — early on in their terms. 

In 2018, Trump imposed tariffs on $283 billion of US imports in 2018, with rates ranging between 10% and 50%. In response, several countries including China, Russia, Canada, Mexico and the EU all filed cases against the U.S. with the World Trade Organization. Many of those countries also retaliated with tariffs of their own.

How will Michigan be affected by new tariffs?

Michigan's auto industry, farmers, and the state's budget surplus could all take a financial hit.

Governor Gretchen Whitmer said last December that the auto industry is something she's very worried about.

"That's the nightmare scenario for all of us," Whitmer said in December, ahead of Trump taking office.

Featured

What is a tariff? Three ways Trump's tariff on Mexico and Canada would impact Michigan

Trump's tariffs could have lasting impact on Michigan in multiple ways and it's more than just the auto industry.

Some local restaurants are also wondering if they will feel the heat.

As President Donald Trump agrees to a 30-day pause on tariffs against Mexico and Canada, China fought back against U.S. tariffs with levies on some U.S. goods.

Analysts say Michigan restaurants are confronting other concerns as owners are dealing with tipped worker pay increases and a potential lack of staff.

Meanwhile, these entrepreneurs say they will fight to survive.

The Source: FOX 2 talked with Detroit business owners and used information from previous stories.

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