The September 12, 2025 meeting of the Michigan Alliance for Greater Mobility Advancement (MAGMA) Advisory Council, convened by the Workforce Intelligence Network (WIN), brought together economists, policy leaders, and workforce leaders to explore trends shaping the future of work. The session focused on the evolving U.S. Tariff policy, legal challenges, and industry implications with key insights from Joe Carpenter of PricewaterhouseCoopers, Paul Corbett with MichAuto, and Jordan Morang of the Manufacturing Institute. MAGMA Co-Chair Oliver Gross of Stellantis welcomed attendees and emphasized MAGMA’s role in uniting industry stakeholders to drive mobility and talent pipeline solutions across Michigan. Gross introduced Chris Andresen, Partner of Dukto Government Relations, as the event moderator.
Evolving U.S. Tariff Policy and Legal Challenges
Joe Carpenter with PwC provided a detailed update on the shifting U.S. tariff landscape, focusing on legal challenges and policy developments. Carpenter highlighted that the Supreme Court is preparing to review the legality of tariffs imposed under the International Emergency Economic Powers Act (IEPA), following a lower court ruling that found the president’s use of IEPA for global levies unlawful. Despite this pending review, tariffs remain in effect, sustaining a period of market uncertainty. Carpenter clarified the distinction between Section 232 tariffs (national security-based and likely to remain durable) and Section 301 tariffs (targeting trade practices and more vulnerable to legal limits). Anderson emphasized that Section 301 allows for industry engagement, whereas IEPA actions are executive-driven with minimal stakeholder input. Carpenter examined the macroeconomic effects of tariffs, pointing to rising core inflation (2.9% in August) and heightened equity market volatility. He explained that U.S. tariff revenues are now a significant contributor to government income, with the trade deficit narrowing—primarily due to inventory drawdowns rather than a fundamental change in trade flows. Click here to view Carpenter's presentation.
Automotive Industry Reactions
Paul Corbett of MichAuto outlined key legal milestones, including the Court of International Trade’s ruling against IEPA tariffs and the Supreme Court’s decision to hear the case. These legal uncertainties, he noted, have caused many industry players to adopt a “wait and see” approach to long-term planning. Global tariff rates remain elevated compared to pre-2025 levels, with notable negotiations underway with China, India, the EU, and North American partners. Mexico has recently increased tariffs on Chinese vehicles, a move contributing to tense trade relations. Corbett described industry-specific impacts, including higher costs for steel, aluminum, and automotive products, as well as supply chain disruptions. He recounted a recent Chinese embargo on magnets critical to North American manufacturing, underscoring the fragility of key supply chains.
The unpredictability of tariff policy has led to delays in capital investment and long-term supply chain adjustments, which are especially challenging given the multi-year development cycles in the industry. Corbett highlighted that two OEMs have reported multi-billion-dollar revenue impacts from tariffs, while suppliers are struggling to determine whether increased inquiries will convert into actual orders. Additionally, the upcoming USMCA review will open a comment period, with Corbett urging industry stakeholders to advocate for stronger protections against Chinese EV imports and clearer rules for component compliance. Click here to view Corbett's presentation.
Workforce Development and Manufacturing Labor Trends
Jordan Morang with The Manufacturing Institute reported that over 400,000 manufacturing jobs remain unfilled, even as overall manufacturing employment has declined. He attributed this to the growing need for advanced technical skills as automation and new technologies are integrated into production. Morang discussed new policy initiatives such as the Workforce Pell Grant program and the Industry Driven Skills Training Fund, emphasizing the need for more responsive workforce systems. He noted that tariff uncertainty has led many companies to prioritize upskilling current employees over expanding hiring. Michigan remains a leader in manufacturing employment, but onshoring and tariffs have not significantly boosted job numbers, with recent declines continuing. Click here to view Morang's presentation.
Automation, AI, and the Future of Manufacturing Skills
During the Q&A the esteemed panel explored how automation and AI are reshaping manufacturing. Andresen shared findings from a collaboration with the Workforce Intelligence Network showing that this workforce vision is already happening in Michigan, which features the Federation for Advanced Manufacturing Education, Michigan Chapter. While companies are actively investing in AI literacy and data remediation, broad deployment remains limited by data quality challenges.
MAGMA Advisory Council Meetings are held quarterly. Topics rotate per meeting and are initiated by the MAGMA Governing Board. Most meetings are recorded, and presentations are posted on the MiAutomobility.org website. For additional information about MAGMA, please email info@winintelligence.org.
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