Mike Musheinesh, owner of Detroit Axle, said the 72.5% tariffs on imported goods have significantly increased costs, forcing the company to pay $725,000 in tariffs for every $1 million worth of goods imported.
“There was a possibility of a 40/50% reduction in sales so given that equation, we decided we may have to idle this operation,” Musheinesh said. Last month, he informed the Michigan Department of Labor that the tariffs would lead to the permanent loss of 102 jobs at the Ferndale location. “Pleasant surprise the market accepted the increase,” said Musheinesh who says they also started taking on the customers of other auto supply businesses that didn’t survive the tariffs. “Many people are starting to exit the industry meaning there are shortages in the market, along with everyone else raising their prices.”
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