Economists: Michigan economy could absorb NAFTA changes
ANN ARBOR, Mich. (AP) — Economists say Michigan’s economy would likely absorb the effects of possible changes to the North American Free Trade Agreement fairly well.
University of Michigan economists released their annual analysis of the state’s economy Friday. They say the prospect of a U.S. withdrawal from NAFTA is unlikely, but they examined the potential effects of changes.
The economists say the effects would depend on whether Mexico and the U.S. place additional tariffs on each other’s exports. They say Michigan could gain 6,400 jobs by 2020 due to more light truck production if there are no new tariffs, but could lose 7,000 manufacturing jobs if there are retaliatory tariffs.
The overall 2018-19 forecast for Michigan sees steady job growth, low unemployment, tame inflation and an economy that continues to diversify.