FERNDALE, Michigan – Nearing a year ago, the automotive aftermarket parts retailer Detroit Axle filed a notice with the state that the family-owned company would lay off more than 100 employees at its headquarters and warehouse here in response to increased tariffs.
The company braced for “Armageddon,” said Mike Musheinesh, CEO of the business his father, who continues as chairman, began in 1989. The company had opened its first U.S. remanufacturing site in 2024 in Warren, moving production from Mexico to be closer to production and was planning for further growth in Metro Detroit. But President Donald Trump suspended by executive order the de minimis tariff exemption, which allowed goods valued at less than $800 into the country duty-free. Detroit Axle’s import tax rate skyrocketed as high as 72.5% from 2.5%. It sued, calling the move unconstitutional since Congress had passed the exemption.
“The Congress has the power of the purse,” Musheinesh said. “The presidency cannot raise revenue. It’s not the executive branch. That’s not how it works.”…