Two Executive Actions Aim to Ease Economic Pain on Michigan Families

LANSING — In a dual effort to provide relief to Michigan residents facing rising costs, Governor Gretchen Whitmer signed two executive directives on Monday, April 2, 2026. One addresses soaring gas prices through an energy emergency declaration, while the other directs state agencies to help Michigan businesses access refunds from unconstitutional federal tariffs.

The moves come as Michigan grapples with economic pressures driven by the ongoing war in Iran and federal trade policies that have raised costs across the state.

Energy Emergency Eases Fuel Restrictions

Whitmer issued Executive Order 2026-4, declaring a statewide energy emergency in response to "skyrocketing gas prices driven by tariffs and the Iran war." The order temporarily suspends lower vapor pressure fuel requirements in eight southeastern Michigan counties, allowing gas stations to sell higher vapor pressure gasoline that is typically 10 to 20 cents cheaper per gallon.

The eight counties covered by the order — Wayne, Oakland, Macomb, Washtenaw, Livingston, Monroe, St. Clair, and Lenawee — are home to approximately 5 million residents, or nearly half the state's population. Drivers outside these areas will see similar savings as they are already permitted to sell cheaper fuel blends.

"This is a temporary and targeted step," the executive order states. "It does not reflect a change in Michigan's commitment to clean air or fuel standards. It is a short-term measure to address rising fuel costs and supply constraints caused by the Iran war."

According to AAA Michigan, the average price of regular gasoline in Michigan reached $3.89 per gallon as of April 1, 2026 — up from $3.28 per gallon at this time last year. This represents a 30 percent increase and is the highest average price since the summer of 2023. The price of regular gasoline a month prior, at the start of the Iran conflict, averaged $2.98 per gallon.

Whitmer blamed both the war and federal tariffs for the increased costs. "As governor, I can't end a war overseas or undo bad policies at the federal level that led to higher gas prices, but I will do what I can to try to give families a break," she said in a statement.

The U.S. Environmental Protection Agency issued a temporary waiver of federal vapor pressure requirements nationwide starting May 1, 2026. Whitmer's executive order brings Michigan in line with that waiver.

The state's unique fuel blend requirements for southeastern Michigan were established in 1993, when the region had more factories, more pollution-prone power plants, and fewer environmentally-friendly vehicles. Mark Griffin, president of the Michigan Petroleum Association, noted that the lower-vapor-pressure gas requirements are "much less relevant today."

Tariff Refund Directive Aims to Return Money to Businesses

On the same day, Whitmer signed an executive directive ordering state agencies to help Michigan businesses and employers receive refunds for tariffs they paid under former President Donald Trump's International Emergency Economic Powers Act policy. The U.S. Supreme Court ruled those tariffs unconstitutional in February 2026.

"This executive directive will show us the damage from these irresponsible tariffs and help get refunds back to Michigan businesses," Whitmer said.

The directive instructs several state departments — including Agriculture and Rural Development, Labor and Economic Opportunity, Transportation, and Treasury — to assess how the tariffs affected Michigan's economy and report their findings within 30 days. The order also directs state departments to use their available channels to ensure registered businesses and employers know how to seek refunds under the federal process being developed.

According to U.S. Customs and Border Protection, they are between 60% and 85% complete with creating a streamlined process for refund claims. State officials have linked tariffs to higher consumer costs, estimating the average Michigan family paid about $1,000 more per year due to price increases.

A recent analysis found that tariffs cost U.S. automakers $35 billion last year alone. Michigan's industries have been hit hard, with significant impacts reported across multiple sectors.

Key Findings from Previous Tariff Reports

Whitmer's office released findings from a comprehensive study on tariff impacts ordered in July 2025. The report highlights several industries hit hardest by the tariffs:

Farmers and families: The Michigan Department of Agriculture and Rural Development noted sharp declines in agricultural exports, including wheat down 89%, cherries down 62%, apples down 58%, and soybeans down 46%. Meanwhile, prices for spices increased 50%, food packaging rose 12%, and overall food prices increased 3.6% at the store level.

Homebuilders and homebuyers: The Michigan State Housing Development Authority tracked a nationwide increase of up to $4 billion on materials necessary for home construction, along with a $10,000 increase in home prices.

Road infrastructure: The Michigan Department of Transportation reported a $218 million increase in costs for road projects caused by tariffs and economic inflation.

A Broader Economic Picture

Whitmer has been working to lower costs on housing, healthcare, and education while calling for a budget that continues tax cuts for working families and retirees. "The pain of these increased costs from tariffs has not been offset by any of the promised economic gain," her administration noted.

US GDP grew at a slower rate in 2025 than in preceding years, and companies added fewer jobs in 2025 than at any point in the last 20 years, according to the governor's office.

Whitmer emphasized that ensuring access to the refund process is especially important for smaller businesses that may lack the legal or financial resources to navigate complex claims. "Whether it's making it easier to get your refund or working to lower everyday costs, we've got your back," she said.

Context and Previous Action

Whitmer previously issued Executive Directive 2025-5 in July to begin assessing the impacts of tariffs across Michigan industries and examine how increased costs are passed on to consumers. That directive sought to understand the full economic toll of federal trade policies before the Supreme Court struck down the tariffs.

During a similar gas price spike in April 2022, state lawmakers attempted to suspend the state's 52.4-cent per gallon gas tax for six months, but Whitmer vetoed the measure, noting it didn't have enough support in the Legislature to take effect immediately.

In June 2022, after an Indiana refinery fire, Whitmer issued an executive order allowing gas stations to begin transitioning to less expensive winter fuels earlier than the typical September 15 deadline.

As Michigan faces these economic challenges, Whitmer's administration is taking what it views as available executive actions to provide temporary relief while calling for legislative solutions through a continued budget that delivers property tax relief for seniors and maintains tax cuts for working families.

Sources:

  • Governor Whitmer Press Release on Executive Order 2026-4 – https://www.michigan.gov/whitmer/news/press-releases/2026/04/02/whitmer-issues-executive-order-declaring-energy-emergency-to-save-motorists-money-at-the-pump
  • Detroit News – Whitmer declares energy emergency – https://www.detroitnews.com/story/business/2026/04/02/michigan-gov-gretchen-whitmer-declares-energy-emergency-suspends-some-high-cost-fuel-blend-rules/89438103007/
  • Michigan Thumb – High Court snubs Michigan in Line 5 fight; Whitmer moves to secure tariff refunds – https://www.michigansthumb.com/news/article/whitmer-line5-tariff-court-michigan-hall-22186031.php
  • ABC12 – Whitmer orders study of tariff effects on Michigan's economy – https://www.abc12.com/news/state/whitmer-orders-study-of-tariff-effects-on-michigans-economy/article_7f6141b8-8cf2-48fa-8bef-456d06df3524.html
  • WKZO – Enbridge lawsuit against Michigan allowed to proceed by U.S. Supreme Court – https://wkzo.com/2026/04/02/910634
  • Michigan News Source – Governor Whitmer Rebuffed as Supreme Court Declines to Take Line 5 Case – https://michigannewssource.com/2026/04/governor-whitmer-rebuffed-as-supreme-court-declines-to-take-line-5-case