By Andi Anderson
On July 31, 2025, Governor Gretchen Whitmer signed an executive directive asking state offices to investigate the impact of tariffs on Michigan’s economy.
As tariffs reach their highest point in 115 years, they have significantly increased costs, disrupted supply chains, and affected key industries like manufacturing, agriculture, and automotive production in the state.
"I have heard from countless Michiganders alarmed by the way Washington Republicans are handling tariffs," said Governor 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.”
Tariff Impact on Michigan Manufacturing
Michigan’s manufacturing industry has already seen significant disruptions due to the Trump administration’s tariffs. Major auto companies like Stellantis, GM, and Ford have reported massive losses, attributing much of the financial strain to tariffs.
Ford alone said it expects tariffs to cost them $2 billion. Last week, an auto parts manufacturer in Michigan announced it would close its facility due to the impacts of tariffs, laying off over 100 employees. Even longstanding businesses like a Zeeland clock company have been forced to shut their doors.
Tariff Impact on Michigan Agriculture
Michigan’s agriculture sector, which generated $2.9 billion in exports last year, has been severely impacted by tariffs. The state’s agricultural industry relies on trade relationships with Canada and Mexico, especially for crop nutrients, fertilizer, and feed ingredients.
Michigan is also a major soybean exporter, with China being a key market. The National Soybean Association predicts a 52% decline in soybean exports, costing Michigan farmers nearly $100 million annually due to the ongoing trade war.
Tariff Impact on Michigan's Economy
As tariffs continue to drive up costs, companies and consumers will bear the brunt of the financial strain. While companies have been working through inventory purchased before tariffs were enacted, the expiration of this inventory could lead to an $82.3 billion cost for U.S. employers. This could result in job cuts, price hikes, and business closures across the nation.
For consumers, tariffs are expected to drive up costs by 60%, which could translate to an annual loss of $2,100 to $4,900 per household. This means that Michigan families will have less to spend on everyday necessities like groceries, electricity bills, and car payments.
Governor Whitmer’s Efforts to Lower Costs
- Governor Whitmer has consistently prioritized reducing costs for Michigan families. Since taking office, she has enacted measures to save residents money, such as:
- Rolling back the retirement tax, saving 500,000 households an average of $1,000 annually.
- Quintupled the Michigan Working Families Tax Credit, giving over 700,000 families an average tax refund of $3,150.
- Expanded access to free pre-K for four-year-olds and made car insurance more affordable, saving drivers at least $120 per car in 2020.
- Eliminated the tampon tax and delivered $400 refunds per vehicle back to Michigan drivers.
- Launched the MI Open Account Coalition, helping families save up to $3,000 per year with low-cost financial services.
Whitmer is also focused on expanding unemployment benefits, increasing the minimum wage for over 700,000 workers, and implementing policies aimed at helping families with water affordability and educational costs.
Photo Credit: gettyimages-zoran-zeremski
Categories: Michigan, General