Michigan
This hockey town in Michigan has deep ties to Canada. Then came Trump’s tariffs
There are few entities that embody the close, fraternal ties between the US and Canada quite like the Saginaw Spirit junior ice hockey team.
In a place whose fortunes have been more down than up in recent decades, the Dow Event Center hockey arena in Saginaw, Michigan, comes alive with more than 5,000 fans once these young stars take to the ice. A huge banner depicting the players adorns the main street into the city.
Nearly all the players, aged 16 to 20, come from Canada, and stay with local Saginaw families during the regular playing season, which runs from September to April.
“They are family, almost literally,” says Jimmy Greene, the Spirit’s vice-president of marketing and community relations, “because players come over here and stay with American families. It’s more than just sport.”
One of the top prospects of this year’s National Hockey League entry draft is forward Michael Misa, the Spirit’s 18-year-old Canadian captain. Last year, the Saginaw Spirit won the Memorial Cup of the Ontario Hockey League for the first time. In the season that recently finished, the Spirit played 28 times on Canadian soil.
So the fallout from Donald Trump’s tariffs regime on Canadian goods has been felt more keenly in Saginaw than most other communities – as has the fight over the Canadian election, with the US president’s jibes over Canada becoming the US’s 51st state looming over the contest amid a fierce backlash against such comments.
“We’ve had this relationship for decades and all of a sudden, in the last couple of months, it’s been uprooted,” says Greene.
“Of course, you’re going to be concerned because you just don’t know [what will happen next]. At some point, it’s going to end up costing us. I just don’t know what extent and by how much.”
As the largest city in the northern half of Michigan located within a short drive of three Canadian border crossings, Saginaw has closer ties to Canada than perhaps any other community of its size. Canadian companies own close to 4,000 acres (1,600 hectares) of farmland in the county, and last year, Saginaw established its first sister-city ties with a Canadian counterpart.
What’s more, it is a key political bellwether and manufacturing county that helped push Donald Trump over the line in last November’s presidential election, but today the community faces uncertainty around the trade war with Canada.
Michigan, with its vast automotive manufacturing industry, is set to be affected by Trump’s trade battle with Canada more than perhaps any other US state.
After Trump announced 25% tariffs on Canadian vehicles and parts – with some exemptions – Ottawa responded with its own 25% tariff on certain US automotive products. Canada says the tariffs are unjustified, but on 23 April Trump warned that the tariff figures could go up.
While Trump has claimed the US doesn’t need goods produced by its northern neighbor, Canada buys more American products than any other country, at $356bn worth of purchases. Nearly 40% of Michigan’s exported goods go to Canada. In 2023, $1.7bn worth of goods made in the Saginaw metropolitan area were exported, one of the highest amounts for any Michigan city, with much of that sent to Canada.
Nexteer Automotive employs around 5,000 people in Saginaw while Means Industries, an automotive parts company headquartered in the city, also has a base in London, Ontario. Repeated calls and emails sent by the Guardian to Saginaw’s chamber of commerce seeking information on specific local industries potentially affected by the tariffs were not responded to.
‘Sport right now triumphs over politics’
Saginaw is no stranger to economic ups and downs.
On a recent Friday afternoon, the downtown area is almost dead. Despite the recent success of the hockey team, there isn’t a sports bar for blocks in any direction as most of Saginaw’s commercial activity is now concentrated around miles of strip malls north of downtown.
For Brad Pyscher, an officer at a correctional facility and former union president who, on a recent Saturday afternoon, is manning the Saginaw county Republican party office in one of these strip malls, the tariffs on Canada were something of a shock.
“People are concerned, and they hope this works itself out,” he says. “The shock and awe [of the tariffs] really took everyone by surprise.”
The 54-year-old says he had voted independent all his life before backing Democrat Barack Obama, and then Trump for president in 2016.
“The thing with Trump, whether you like him or don’t like him, there’s transparency,” he says. “I’m drawn to him because he is not a politician.”
But Pyscher concedes that Trump could have negotiated with Canada before “hitting them with that shock and awe. I think it’s on purpose, to let the world know he can do it,” he says.
“[With] Canada, it should have been negotiated a bit better, a lot better. I’m expecting the deals with Canada to come soon, and we can all put this behind us.”
Trump has said one of his main motivations for issuing tariffs on Canada was to stop the flow of illicit drugs into the US. However, reports indicate the opposite may be happening. Last month, $11m worth of cocaine was seized at the Port Huron border crossing, 80 miles (130km) east of Saginaw – on its way into Canada. In December, around 1,000lb (450kg) of cocaine were also seized in a semi-truck attempting to enter Ontario from the same border crossing.
Back in the world of ice hockey, Greene of Saginaw Spirit says he feels most people he interacts with have been able to park their political feelings, starting with the organization’s Canadian players, who have been essential to the team’s recent success.
“I think we all made a concerted effort, while not to keep [the players] dumb and naive, we did enough to make them feel comfortable in our environment and away from the political stuff. We kept them in a mindset of sport,” he says.
But Greene also realizes the strained ties with Canada fueled by the White House’s policies are a very real dynamic.
“I’m not immune to the idea that at some point Canada had some hostile feelings towards us, but people have, until this point, been able to park the politics away from sport. I think sport right now triumphs over politics,” he says.
“Because we play in Canada, and [because of] the tariffs. I’m more concerned about how they feel about us. Our feelings towards Canada have been and always will be favorable and friendly. I’m concerned not just because of the economic tariffs, but because of the emotions that come from that. I’d be foolish to pretend otherwise.”
Saginaw residents are hoping the kind of fraternal ties that were on display across the city last May, when hundreds of Canadian hockey fans from as far away as Saskatchewan descended on the region for the Memorial Cup, won’t become a thing of the past.
“Everybody’s been super friendly. You guys have been incredible hosts,” one Canadian hockey fan who drove 11 hours from Quebec for the tournament told local media.
Michigan
Gotion wants Michigan township to pay the $23.7M it owes in incentives
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Gotion Inc. has asked a federal judge to order the Michigan township where it was supposed to call home to repay the roughly $23.7 million it owes the state in taxpayer-funded incentives.
Green Township’s actions opposing Gotion’s planned battery parts plant made it all but impossible to move forward, the company argued, leaving Gotion in default under its agreement with the state and on the hook for the $23.7 million in taxpayer-funded incentives it received for land purchases and improvements.
“Now that it is clear the project cannot move forward in the face of this continued opposition and the state of Michigan’s withdrawal of support, Gotion seeks to add these constitutional claims and request damages as a result of the township’s breach of the development agreement and violation of Gotion’s constitutional rights,” a May 29 court filing in the case said.
Last week’s filing seeks to amend an earlier lawsuit Gotion filed against Green Township over zoning changes that made its development all but impossible to proceed.
In February, the Sixth Circuit Court of Appeals blocked Gotion’s lawsuit, arguing that it was moot because the state had already found the project in default and had demanded back roughly $23.7 million that had been given to the subsidiary of a Chinese company to purchase and prepare land in Green Township. In light of that ruling, Gotion is seeking to amend its lawsuit to seek additional damages.
“…the Sixth Circuit implied that given the facts of the dispute at this point, the correct form of damages for Gotion’s breach of contract claim against the township is likely monetary damages and no longer injunctive relief,” Gotion said in the May 29 filing.
The amended filing includes demands for damages arising from the “millions” Gotion paid or spent in reliance on the project moving forward, lost profits the company would have made if the manufacturing facility were built, attorney fees and an amount “not less than $23,670,873.56 for funds advanced towards land and development costs related to the project that the state of Michigan is now claiming should be repaid.”
Attorney General Dana Nessel’s office, which is seeking to recoup the $23.7 million on behalf of the Michigan Strategic Fund, said it was aware of Gotion’s May 29 filing against Green Township and is “monitoring the situation.” The office declined further comment, citing attorney-client privilege.
Gotion first sued Green Township in March 2024 after the board — all of whom had been replaced in November 2023 with members concerned about the Gotion project — rescinded two resolutions needed for the project to move forward. Gotion sued in federal court for breach of contract, and a U.S. district court judge issued a preliminary ruling in Gotion’s favor.
But the Sixth Circuit later blocked the case after Gov. Gretchen Whitmer’s administration, last fall, found Gotion to be in default of its grant agreement.
The state’s finding of default was in part due to the Green Township lawsuit. The company’s agreement with the state prohibits involvement in a suit that “would reasonably be expected to have a material adverse effect on the project or the grantee’s performance of its obligations under this agreement.”
The state also maintained Gotion’s “cessation of eligible activities” for a period of 120 days constituted an “abandonment” in violation of the grant agreement.
The Michigan Strategic Fund said it would seek to recoup the $23.7 million used to purchase and prepare land for Gotion in Green Township.
The Gotion project in Green Township was fraught with controversy shortly after its announcement. The company had planned to locate a battery parts plant in the Big Rapids area, creating up to 2,350 jobs and receiving about $175 million in taxpayer-funded incentives for the project.
Local opponents pushed back on the project because of the secretive nature with which it was negotiated, the unknown environmental effects of the project and Gotion’s parent company in China. Those concerns were amplified by Republican candidates in 2024, including both Vice President JD Vance and President Donald Trump.
The legal maneuverings with Gotion have already come at a cost to the township.
For the past three years, the state Treasury Department has flagged Green Township in Mecosta County because its expenditures have exceeded the amount of money authorized in its annual budget. In a corrective action plan submitted to Treasury last month, the township said its deficits were “primarily due to the legal fees.”
eleblanc@detroitnews.com
Michigan
Residents in Taylor, Michigan, fight against possible rezoning
A group of residents on Holland Road in Taylor, Michigan, say they are now doing everything they can to keep their neighborhood the way it is after some of them received a letter saying the city is considering rezoning their neighborhood.
“People across the street from me could have warehouse front property instead of woods and nice residential homes,” said Matthew Streicher.
Streicher, whose family has owned property on Holland Road for more than 100 years, says that has been his concern after he received a letter from the city about a proposed rezoning from residential to light industrial directly behind his home near Wick and Holland roads.
“So that’s when I also decided to start knocking on doors around here and saying this is what is going on, we need to speak out and have a voice as to what happens in our backyards, literally,” said Streicher.
Streicher told CBS News Detroit that three of his neighbors received that letter, informing residents that there’s a possibility of a new cold storage warehouse development if this land is rezoned.
“Nothing that belongs in a neighborhood,” said Tim Adkins.
“Heartbreaking, heartbreaking, you know,” said Denise Haggadone.
Many who live on Holland Road say this possibility is even more disturbing because of how long everyone has lived on this quaint road. And these same homeowners say that an industrial facility would only bring in more traffic and take away natural green space, most likely hurting their property value as well.
“It’s nice to see the wildlife, you know, there’s so few places left,” said Adkins.
On Tuesday, CBS News Detroit spoke off-camera with City Council Chairman Charley Johnson, who also lives on Holland Road. Johnson says he understands all of his neighbors’ concerns and agrees with them.
He says the company proposing this rezoning has every right to do so, and that the planning commission will vote on it Wednesday evening.
“It’s sad, I raised my kid here, and he’s planning on having this home after I pass or retire or what have you,” Haggadone said,
The residents hope to see a big turnout at Wednesday’s planning commission meeting at 7 p.m. on Wednesday, June 3, at Taylor City Hall.
Michigan
Sterling Heights to consider opposing Michigan House tax policy bills
The Sterling Heights City Council is set to consider a resolution Tuesday evening opposing tax policy bills in Lansing that one councilmember contends put every municipality “at risk.”
The Michigan House voted in May to pass several bills that would slash property taxes across the state, but skipped a vote on a bill needed to replace some of the more than $5 billion in lost tax revenue.
At its Tuesday evening meeting, Sterling Heights City Council is slated to consider the adoption of a resolution opposing Michigan House Bills 5872 through 5879 due to “their potential negative impact on local government revenue, financial planning, and administrative operations,” a city document said. Sterling Heights City Manager Mark Vanderpool said the city would lose about $5 million in annual revenue from the bills. He said there’s no “guaranteed replacement” for the lost revenue, and the city would need to cut services, he said.
“So we’re deeply concerned about that,” he said.
The House’s sweeping tax cuts can’t be implemented without the passage of a separate bill levying a loosely defined 6% sales tax on services that has yet to be revealed. Republicans who control the House did not hold a vote on the sales tax hike bill, which remains in committee.
All combined, the four property tax cuts passed by the House are estimated to result in a tax revenue loss that could progress from $5.5 billion to $7.5 billion a year, according to a series of nonpartisan House Fiscal Agency analyses.
Vanderpool, the Sterling Heights city manager, said he wants the state Legislature to work “hand in hand” with cities, townships and villages to come up with a solution for “guaranteed revenue replacement.”
“We are more than willing ― I think our reputation precedes us ― to work with our state legislators hand in hand to come up with viable solutions that … may reform property taxes without harming communities across the state,” he said.
Sterling Heights Councilwoman Barbara Ziarko said the legislation reduces the city’s revenue without a guarantee of what it will be replaced with. She said that in the future, the legislation could prevent the city from maintaining positions that it has promised residents it would maintain, including public safety roles.
“When they put the burden on our local government, they’re actually putting it on the residents of whatever community it is,” she said.
State Rep. Steve Frisbie, a Calhoun County Republican, previously said that Michigan residents need to see tax relief immediately. He noted a ballot proposal collecting signatures last year would have eliminated all property taxes in the state. That citizens’ initiative, known as AxMiTax, fizzled out and won’t be on the ballot this fall.
“They realized that our property taxes are too high and they demand that we take action now,” Frisbie said.
More on the bills
The cuts passed by the House in May would eliminate the 6-mill State Education Tax and eliminate the 0.75% real estate transfer tax assessed on the sale price of real estate.
House Republicans also signed off on eliminating the personal property tax. That bill, largely intended to benefit utility companies, is tied to separate legislation that requires utilities such as Consumers Energy and DTE Energy to pass on personal property tax savings by cutting electric and gas rates for their residential customers. It also requires utilities to freeze rates for two years.
Jennifer Varney, Sterling Heights’ finance and budget director, said the elimination of the personal property tax would result in a $4.3 million annual revenue loss for the city. She said the personal property tax refers to the taxes that businesses pay on their assets, such as their machines and vehicles.
Another tax on the chopping block is the so-called “pop-up tax,” an increase in a property tax bill that occurs when a house transfers from one owner to the next in Michigan, uncapping a constitutional limit on the property tax increase on a home’s taxable value.
Under the state Constitution, a property’s taxable value cannot increase by more than the rate of inflation or 5% each year. But when a property is sold, that cap lifts and is reset at a new, often higher taxable value, resulting in a “pop-up” in property taxes.
Varney said the “pop-up” is the only way cities “recapture” the true value of a home. Michigan also has the Headlee Amendment, a state law that requires local governments to roll back millage rates if taxable property values rise faster than the rate of inflation.
“If you take away the pop-up … and you keep the rollback of the millage, you’re basically limiting any kind of growth in taxable base for municipalities,” she said.
Staff Writer Beth LeBlanc contributed.
asnabes@detroitnews.com
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