Windsor mayor ready to cut Detroit Grand Prix sponsorship if Trump tariffs go through

The mayor of Windsor, Drew Dilkens, has threatened to halt his city’s $50,000 sponsorship of the Detroit Grand Prix if such moves are made, even though taxes on Canadian imports have been delayed for 30 days.

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    The mayor of Windsor threatens to halt sponsorship of the Detroit Grand Prix if tariffs take place
    
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    The mayor also threatened to stop subsidizing the Windsor-Detroit tunnel bus.
    

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  The mayor of Windsor threatens to halt sponsorship of the Detroit Grand Prix if tariffs take place
  
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  The mayor also threatened to stop subsidizing the Windsor-Detroit tunnel bus.
  

DETROIT (FOX 2):The Trump Administration’s tariff discussions have caused a reverberation between the United States and Canada. Meanwhile, changes are already happening across the river from Detroit.

What they’re saying:

The mayor of Windsor, Drew Dilkens, has threatened to halt his city’s $50,000 sponsorship of the Detroit Grand Prix if such moves are made, even though taxes on Canadian imports have been delayed for 30 days.

Additionally, Dilkens has threatened to suspend funding the Windsor-Detroit tunnel bus, which carries 40,000 Canadians to Detroit annually, primarily for shopping.

The mayor admits that the tariffs are a tool for bolstering border security and stopping the illicit flow of fentanyl.

“Extent that we have illegal drugs going back-and-forth gosh I ve got problems in my own city, and I haven t been to a city of our continent that doesn t see the effects of fentanyl,” he stated.

Look more closely:

The Canadian Grand Prix drivers will lose money, according to Lisa Lakian of Race Canada.

“Because the sponsorship gives the individual driver however they win a piece of their wings so that s gonna take money from their pocket,” she explained.

Regarding the removal of the Windsor tunnel bus, the mayor claims that Detroit benefits while his city bears the cost.

“How can I possible serve as a financial engine and finance 40,000 people to travel to Detroit when the president is threatening our nation’s economy? “Let’s work this out together,” he remarked, if you could speak with President Trump at this moment.

What is a tariff?

Overview:

. Raising the cost of imported goods and services is intended to deter consumption and encourage consumers to buy more domestic items in order to boost the economy of the country.

In order to replace imported items with domestic ones and increase government revenue, the goal is to promote greater local production.

U.S. presidents frequently enact protectionist policies, such as high tariffs, early in their administrations, according to an article published in the Journal of Economic Perspectives.

Trump levied tariffs ranging from 10% to 50% on $283 billion worth of US imports in 2018. China, Russia, Canada, Mexico, and the EU were among the nations that responded by bringing claims against the United States at the World Trade Organization. Many of those nations also imposed their own tariffs in retaliation.

How will Michigan be affected by new tariffs?

Farmers, Michigan’s auto sector, and the state’s budget surplus may all suffer.

Last December, Governor Gretchen Whitmer expressed her concern about the car industry.

In December, Whitmer stated, “That’s the nightmare scenario for all of us,” just before Trump took office.

Look more closely:

Every vehicle part imported into the United States from Canada or Mexico will be subject to a levy by the federal government. These components end up on the assembly line, and the price of the car increases as the part does.

When the cars are finished and placed on the lot, sticker shock will result. Reduced sales and, ultimately, decreased profitability result from customers turning away.

Whitmer contends that there is no benefit to this.

The fact that the automobiles we purchase, which are manufactured in Michigan, are shipped back and forth from China and other areas of North America will make things much more challenging for our auto sector. We must keep that in mind,” Whitmer stated.

Farmers in Michigan are already concerned that the President’s harsh deportation campaign would result in the loss of migrant farmworkers. The Agri-Business Association of Michigan’s Chuck Lippstreau said the tariffs might affect the cost of everything in the store.

“In the end, tariffs on food, products, and agriculture will raise prices. Every family in Michigan should be mindful of that issue, Lippstreau stated.

Farmers are concerned that this may result in less produce available for sale, which would reduce sales and profits.

“That does hurt the farmers’ opportunity to be successful and grow their economy long term,” said Lippstreau.

In all of this, Michigan residents are the third possible loser. There will be less money available for state services and programs if fewer revenues are coming into the state coffers.

Next steps:

Windsor’s threats will cease to exist if the tariffs are removed from consideration. The mayor added that he gets along well with Mayor Duggan and that he has nothing else planned.

Highlighted

Beyond simply the auto industry, Trump’s tariffs could have a long-term effect on Michigan in a number of ways.