How The Cancellation Of NAFTA Could Affect Businesses In Michigan

If you are going to start a new business in Michigan, it is a wise step to determine Michigan Tax ID directions so that you can easily obtain the 9-digit number. It is very easy to complete the application as long as you ensure the validity of information. For example a valid business address must be disclosed and not a P.O. Box number.

Meanwhile, Michigan is expected to be severely affected if President Donald Trump follows through with the threat to cancel the 24-year old North American Free Trade Agreement (NAFTA). Canadian Consul General Douglas George relayed the message to 150 Michigan business leaders he met during a closed-door session at Grand Valley State University.

In the NAFTA agreement, 3 countries that include United States, Canada and Mexico jointly benefit. Michigan and Canada manufacturers are working closely together in the production of finished goods that will be exported all over the world. Ending the cooperation will be harmful to the ability to sell in other markets.

If NAFTA disappears, George said that that the 3 countries will be suffer from severe damages. The benefits gained by the 3 countries have reached more than $3 trillion. Changes in NAFTA could hinder job growth and cause a recession in West Michigan, the home of food processors, farmers, auto parts manufacturers and makers of office furniture because they rely on Canada for trade.

Michigan businesses generate $24 billion from economic activity and 50,000 jobs from NAFTA. In West Michigan, the impact of NAFTA is $6 billion. According to Birgit Klohs, president and CEO of the Right Place, a West Michigan manufacturer lost its customers and lay off its workers due to an American tariff on German steel. He was forced to raise prices on the product that uses a specific type of steel from Germany. Recently, the Trump administration has made threats that it will impose tariff on Canadian steel and aluminum.

It is important to be knowledgeable with Michigan Tax ID directions because it is a requirement for various business-related activities. Business licenses and permits will require the Tax ID as well as application for a checking account under the business name.