US President Donald Trump on Monday, 28 July credited his administration's 25% tariff on foreign automobiles and trucks with reviving General Motors (GM) and pulling automobile manufacturing back to the United States, calling it the company's strongest year on record. Trump made the remarks during a visit to the GM Milford Proving Ground in Michigan — which he described as the first by a sitting US president to the facility.

What Trump Said at Milford

Touring the proving ground alongside GM Chief Executive Officer Mary Barra and company President Mark Reuss, Trump told workers: 'Today, I'm proud to say that the auto industry is back and America is back, and it's pulling Detroit and Michigan along with it.'

He attributed the turnaround directly to his trade policy. 'It's amazing what tariffs will do for General Motors, and what the election has done,' Trump said. 'They're doing great; General Motors is doing fantastically, the best year they've ever had.'

The Tariff Framework

Trump outlined the logic behind the levies in stark terms: manufacturers who build vehicles outside the United States face a 25% tariff on every car or truck shipped into the American market, while those who produce domestically pay zero tariff. 'My policy is simple — if you make your truck or your car in a foreign country, you have to pay for the privilege of sending it into our market,' he said. 'But if you build in a factory in Michigan or someplace in our country... you pay zero taxes, zero tariff.'

GM's Investments and Production Numbers

According to Trump, GM has invested $9 billion over the past two years in repatriating factory operations to the United States and has expanded its Factory Zero plant in Detroit to produce the Chevrolet Silverado, GMC Sierra, Hummer, and Cadillac Escalade. The president said GM raised truck and sport utility vehicle production by 20% in 2026.

The Milford Proving Ground, which has served as GM's primary vehicle development and safety testing facility for more than a century, is also where the presidential limousine — known as 'the Beast' — is reportedly designed, built, and tested. Trump noted that the facility's five-and-a-half-mile test track has hosted every generation of the Chevrolet Corvette.

Broader Industry Moves

Trump pointed to investment commitments from other major automakers as further evidence of the policy's impact. Ford is reportedly investing $3 billion to manufacture parts for a new pickup truck in central Michigan, while Toyota, Hyundai, and other manufacturers are also said to be relocating production to the United States. The president framed these moves as a direct consequence of the tariff incentive structure.

Michigan remains both the geographical centre of the US auto industry and a significant political battleground. Detroit hosts the North American operations of General Motors, Ford, and Stellantis, while the broader supply chain supports manufacturing employment across the state. Whether the production gains translate into sustained job growth — and how much is attributable to tariffs versus other market factors — is a question analysts and critics are likely to continue debating as the policy beds in.