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Assembly Breaking News Automotive Assembly

Study: 2025 Tariffs Cost Midwest Manufacturing 41,700 Jobs

By JJ Moore
Illustration of U.S. 100 dollar bills representing the financial impact of tariffs on American households.
Image: zimmytws via Adobe Stock
July 23, 2026

DETROIT — Tariffs imposed in 2025 cost Midwest manufacturers an estimated 41,700 jobs, according to a new study from the Midwest Economic Policy Institute and the University of Illinois' Project for Middle Class Renewal.

The report concludes that Illinois, Indiana, Iowa, Michigan, Minnesota and Wisconsin were disproportionately affected because of their concentration of manufacturing and agriculture, sectors that rely heavily on imported materials and export markets.

Researchers estimate Michigan experienced the largest manufacturing employment impact, with approximately 12,400 jobs lost, followed by Indiana (9,100), Illinois (7,500), Wisconsin (6,100), Minnesota (3,900) and Iowa (2,700). The estimates are based on economic modeling that incorporates manufacturing employment trends, import intensity and the effects of retaliatory tariffs on exports. 

The study also estimates that new tariffs increased annual household costs by an average of about $2,000 across the six-state region, compared with a national average of approximately $1,300. Michigan households faced the largest estimated increase at about $3,200, followed by Indiana at about $2,600 and Illinois at about $2,200.  

According to the report, manufacturers across the Midwest reported tariff-related cost increases ranging from 10% to 48% in 2025. The authors cite examples including temporary layoffs at Stellantis plants, workforce reductions at Cleveland-Cliffs, layoffs at Whirlpool and workforce cuts at Detroit Axle as evidence that higher production costs and retaliatory trade measures affected manufacturing operations. 

The report argues that manufacturers in Michigan and Indiana were particularly vulnerable because of their reliance on vehicle engines and components that move across international supply chains. 

The report draws on data from the U.S. Bureau of Labor Statistics, Bureau of Economic Analysis, Census Bureau and other public sources, along with tariff impact models developed by Yale University's Budget Lab. 

The full report is available for your review.

Looking for quick answers on assembly and manufacturing topics? Try Ask ASM, our new smart AI search tool. Ask ASM →

KEYWORDS: manufacturing activity manufacturing recovery tariffs

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Jj moore author

JJ joined ASSEMBLY Magazine in 2026. He has over a decade of writing and editing experience. As a lifelong learner, he particularly enjoys covering topics that are new to him and likes to keep up on emerging trends.

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