The slide in cross-border traffic comes as some Canadian travel agents and officials say more people are scrapping plans to visit the United States.

Left unanswered at the revenue conference was how Trump's planned budget cuts will impact revenues Michigan receives from the federal government.

The state of Michigan's financial picture has eroded considerably since January 2023, when the state was sitting on a $9.2-billion budget surplus.

Over the next five years, the increased tariffs will cost Michigan's auto industry about 3,300 jobs, the economists said. Those job losses will have a multiplier effect on Michigan’s broader economy, meaning there will be a reduction of "approximately 13,000 jobs over the next several years," according to their report.

Walker Tool & Die president Jeff Umlor says while tariffs help level the playing field with China, the unpredictable implementation hurts his customers.

Michigan businesses are navigating tariffs and are making decisions on whether to stockpile, change suppliers and raise prices for customers.

The impact of tariffs amid a trade war is already showing up in travel from Canada to Michigan. The number of people crossing into the Great Lakes State from Canada fell 11% in February and March.

Consumers showed signs of weakness last month as retail sales slowed, indicating shoppers may be pulling back as they await possible fallout from tariffs. The trend poses a risk for the wider economy, since consumer spending accounts for roughly two-thirds of economic activity.

Stocks start lower as investors worry about tariffs and Treasury yields as President Donald Trump's tax bill continues to travel through Congress.