Gov. Whitmer Signs Executive Directive to Assess Impact of Tariffs on Rising Costs for Michiganders

FOR IMMEDIATE RELEASE

July 31, 2025

Contact: Press@michigan.gov

Gov. Whitmer Signs Executive Directive to Assess Impact of Tariffs on Rising Costs for Michiganders

LANSING, Mich. – Today, Governor Gretchen Whitmer signed an executive directive asking various state offices to investigate, calculate, and report the latest impact of tariffs on Michigan’s economy. Reaching its highest point in 115 years, the tariff rate has raised costs and weakened the supply chain, impacting leading Michigan sectors like manufacturing, the auto industry, and agriculture. The executive directive comes a day before President Trump’s August 1 tariff deadline.

"I have heard from countless Michiganders alarmed by the way Washington Republicans are handling tariffs,” said Governor Gretchen Whitmer. “Tariffs have weakened Michigan supply chains, increased costs for family budgets, and caused major firms to scale back operations in Michigan. While I can’t control tariffs, I can make sure you know how they will affect your life and do everything in my power to help. That’s why I’m signing an executive directive to report the updated impact of these tariffs on Michigan’s economy, so we can protect our economy and lower costs for Michigan families. I’ll continue fighting to grow Michigan’s economy with common-sense trade policies that lower costs for Michiganders.”

“Tariffs are already raising prices, hurting Michigan families, businesses, and communities,” said Lt. Governor Garlin Gilchrist II. “To protect Michiganders’ pocketbooks and grow our economy, we’re signing an executive directive to investigate how tariffs will affect our economy, including our factory workers and farmers. Let’s continue Standing Tall for common-sense trade policies that help every Michigander stay and succeed and built their path to health and wealth.”

Impact of Tariffs on Michigan Manufacturing 

The Trump administration’s tariffs have already hit Michigan’s manufacturing industry. Big Three auto companies like Stellantis and GM have reported significant losses, citing tariffs as a major culprit. Ford is taking out a new line of credit due to economic uncertainty and said tariffs will cost $2 billion. Last week, an auto parts firm announced tariff-driven conditions will force it to close its facility in Michigan and lay off over a hundred employees. Even a Zeeland clock company that has operated in Michigan for nearly a century is closing its doors due to tariffs.

Impact of Tariffs on Michigan Agriculture 

The Trump administration’s tariffs have also impacted Michigan farmers and agriculture, which generated $2.9 billion in exports for Michigan last year. Michigan agriculture relies on open trade with Canada and Mexico for crop nutrients, feed ingredients, fertilizer, and more. Michigan is also a top exporter of soybeans to China. The National Soybean Association projected a nearly 52% decline in soybean exports due to the trade war—which will cost Michigan farmers almost $100 million every year.

Impact of Tariffs on Michigan’s Economy 

Companies and consumers will bear the brunt of the tariffs as costs continue to skyrocket. Largely, companies have been working through inventory purchased before tariffs were enacted. However, with this inventory running out, certain U.S. employers could face a direct cost of $82.3 billion because of the federal tariff plans. This could cause large and small companies to lay off workers, raise prices, or even close operations.

Consumers will be the hardest hit as companies are projected to pass on 60% of their tariff costs to consumers. This means that American consumers could lose out on anywhere between $2,100 and $4,900 each year. That is thousands of dollars that American families will no longer have to spend on groceries, electricity bills, car payments, and more.

Keeping Costs Low for Michiganders

Governor Whitmer has been committed to lowering costs for families across the state. Since taking office, the Whitmer-Gilchrist administration has:

• Rolled back the retirement tax to save 500,000 households an average of $1,000 a year.

• Quintupled the Michigan Working Families Tax Credit to give over 700,000 working families an average tax refund of $3,150.

• Expanded access to free pre-K to every four-year-old while prioritizing families who need it most so every kid can arrive at kindergarten ready to learn.

• Signed bipartisan legislation to put money back in people’s pockets and bring down the cost of car insurance, saving drivers at least $120 per car in 2020.

• Delivered refunds of $400 per vehicle back in the pockets of Michigan drivers.

• Eliminated the tampon tax.

• Announced the MI Open Account Coalition offering low or no-cost financial services, saving eligible families an average of $3,000 a year and helping them build wealth.

• Expanded Michigan’s unemployment benefits for the first time since 2011, putting more money into peoples’ pockets.

• Signed a deal raising the minimum wage for more than 700,000 workers, making Michigan’s earned sick time the best in the country, and providing flexibility for small businesses.

• Proposed a budget continuing retiree and working families tax cuts, pre-K for every four-year-old, expanding the MiABLE program, capping test fees for low-income students, and creating water affordability programs for families struggling with bills.

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