State of the State is the monthly round up of policy and research for the state of Michigan from Michigan State University’s Institute for Public Policy and Social Research (IPPSR). Matt Grossmann and Arnold Weinfeld from IPPSR are joined by economist Charley Ballard to discuss the latest in politics and the economy.

On this episode, the trio discusses the short- and long-term political and economic impacts of tariffs. 

Conversation Highlights:

(1:08) – What are the political impacts of tariffs, and what do you make of the UAW’s support for them? Is this a trade war or a drug war?

(3:31) – What about the economic impact? “The economic and political impacts are intertwined, and Michigan stands to lose the most.”

(6:06) – How are the markets reacting?

(7:51) – What about the long-term political impacts? What is the president’s “out” if the tariffs lead to economic stress for consumers? What is the reaction from Congress and the impact on the president’s approval rating?

(9:38) – What are the four upcoming fiscal deadlines we should pay attention to? And what about cuts to Medicaid and Veterans Affairs? How do reduced staffs impact services?

(14:15) – Are Americans fine with layoffs until they feel the cuts personally? “There is a tremendous amount of uncertainty. Corporations and consumers do not like uncertainty.”

(18:02) – How will the Federal Reserve respond?

(20:27) – What do you make of Governor Whitmer’s response? And the Democratic response across the country seems to be all over the board. There doesn’t seem to be a coherent response.

(25:11) – What about the impact of cuts to the National Science Foundation, the National Institutes of Health and USAID?