Michigan's two leading candidates for governor squared off Wednesday over how to shield the state's economy from an ongoing trade war with Canada, with Democratic Secretary of State Jocelyn Benson and Republican Representative John James laying out starkly different visions for handling President Donald Trump's tariffs. Both said they intend to work with Trump, but they diverged sharply on what Michigan itself should do about the financial fallout hitting businesses across the state.
The forum, held at the MotorCity Casino Hotel, was hosted by the Detroit Economic Club, a longtime venue for major political and business addresses in Southeast Michigan. As reported by The Detroit News, the two candidates used the Detroit stage to draw contrasts on trade, state spending and economic development just weeks into the fall campaign.
Benson Pitches Direct Deals With Canadian Provinces
Benson has proposed negotiating what she calls “subnational” trade agreements directly with Canadian provinces in an effort to shield Michigan businesses from federal tariffs. The pitch is notable given that U.S. constitutional law reserves sole foreign trade treaty authority to the federal government, making state-level trade pacts a legally uncertain proposition.
Benson has also called for reforming or breaking up the Michigan Economic Development Corporation, the state's primary public-private agency for business attraction incentives, to redirect resources from corporate megasites toward small and micro-businesses. The proposal, floated on September 8, was detailed by the Small Business Association of Michigan and signals a break from incumbent Democratic Governor Gretchen Whitmer's approach of courting large EV manufacturing megasites with state subsidies.
James Bets on Audits and Trump's Tariff Strategy
James, for his part, supports the federal trade approach and Trump's broader economic direction, focusing his own platform on rooting out state government waste rather than reworking trade policy. His campaign has called for a comprehensive 10-year audit of state spending targeting the MEDC and pandemic-era expenditures for waste, fraud and abuse, a plan detailed on the John James for Michigan campaign site.
Republican lawmakers in Michigan conducted several legislative oversight probes into state economic agency spending during 2026, giving James's audit proposal a foundation in ongoing legislative activity. James selected conservative state Representative Jay DeBoyer as his running mate on August 13, according to the Detroit Regional Chamber; DeBoyer previously served on Michigan House oversight committees investigating state agency management.
Why Canada's Tariffs Hit So Close to Home
The stakes for Michigan are considerable. Canada is the state's largest export destination, having purchased $23.2 billion in Michigan goods in 2025 and accounting for roughly 39% of the state's total goods exports, per Bridge Michigan. Automotive component supply chains routinely cross the U.S.-Canada border multiple times during assembly, making the state especially exposed to cross-border friction.
Michigan exports face Canadian tariffs amid the broader U.S.-Canada trade tensions. Meanwhile, the trade tensions have heightened concerns about cross-border automotive supply chains.
Money and History Loom Over the Race
Benson entered September with a substantial financial edge, holding a $5.9 million war chest compared to $1.5 million for James, according to state campaign finance reports reviewed by Bridge Michigan. James has leaned heavily on independent expenditure support from conservative political action committees to help close that gap, a dynamic Hoodline previously reported on.
The race adds another layer of uncertainty for both campaigns. Benson is seeking to succeed two-term Democrat Whitmer, and Wednesday's policy clash in Detroit focused attention on the race.
