Study Says 2025 Tariffs Cut 41,700 Midwest Factory Jobs, Raising Household Costs by $2,000
Updated
Updated · Assembly Magazine · Jul 22
Study Says 2025 Tariffs Cut 41,700 Midwest Factory Jobs, Raising Household Costs by $2,000
3 articles · Updated · Assembly Magazine · Jul 22
Summary
41,700 Midwest manufacturing jobs were lost in 2025 because of tariffs, a new Midwest Economic Policy Institute and University of Illinois study estimated, with Michigan hit hardest at about 12,400 jobs.
The report ties the losses to higher input costs and retaliatory tariffs that squeezed manufacturers in six states heavily exposed to imported materials, export markets and cross-border auto supply chains.
10% to 48% tariff-driven cost increases were reported by Midwest manufacturers, and the study cites temporary layoffs at Stellantis, cuts at Cleveland-Cliffs, Whirlpool and Detroit Axle as evidence of the strain.
$2,000 in added annual household costs across the region accompanied the job losses, versus a national average of about $1,300; Michigan households saw the biggest estimated hit at roughly $3,200.
The findings add to earlier estimates that the 2025 tariffs shrank Midwest GDP by $18 billion, even after the U.S. Supreme Court ruled the measures unconstitutional in February 2026.
As controversial tariffs expire today, will Midwest families finally see relief, or will new trade policies trigger another price shock?
With courts striking down recent trade penalties, how will today's newly launched global tariffs reshape the struggling American manufacturing supply chain?