Despite uncertainty on trade and other policy, Detroit is projected to see a positive economic performance over the next five years, according to a report released Friday by University of Michigan economists.

“Detroit's economy has shown signs of firming up in the most recent data after hitting a soft patch last year,” the economists wrote.

An August 2025 executive summary update to the Detroit Economic Outlook for 2024–30 notes that higher tariffs are expected to weigh on Michigan’s auto industry. Blue-collar industries are expected to see modest growth by the end of 2025 and growth will remain subdued through the end of 2030. Gains are expected in finance, leisure and hospitality and public administration.

"We estimate that higher tariffs will cost Michigan’s transportation equipment

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