Governor Whitmer Signs Executive Directive to Assess Tariff Impact and Help Michigan Businesses Access Refunds

Governor Whitmer Signs Executive Directive to Assess Tariff Impact and Help Michigan Businesses Access Refunds

LANSING, Mich. — On the one-year anniversary of "Liberation Day" tariffs, Governor Gretchen Whitmer signed an executive directive Thursday to help Michigan businesses and employers receive refunds for tariffs they paid under President Donald Trump's policy that the U.S. Supreme Court ruled unconstitutional.

The directive instructs state departments to submit reports illustrating how tariffs have impacted Michigan industries and consumers. It also directs state agencies to use available channels to ensure registered businesses and employers know how to seek refunds under the federal government's developing process.

"The president's tariffs have jacked up costs, and Michiganders have been paying the price," Whitmer said in a statement. "Now that the Supreme Court has ruled that these tariffs are illegal, it's time for Michiganders to get their money back. This executive directive will show us the damage from these irresponsible tariffs and help get refunds back to Michigan businesses. I'll continue to call on Congress to set a strategic trade policy that keeps costs down and our economy stable. Whether it's making it easier to get your refund or working to lower everyday costs, we've got your back."

Supreme Court Ruling on Tariffs

The U.S. Supreme Court ruled in February that the tariffs, enacted under the International Emergency Economic Powers Act (IEEPA) without Congressional action, were unconstitutional. The Court's decision in Learning Resources, Inc. v. Trump struck down the so-called "Liberation Day" tariffs imposed in April 2025.

Following the Supreme Court's decision, the U.S. Court of International Trade ruled that the federal government must issue refunds for the unconstitutional tariffs. In their most recent update to the court, the U.S. Customs and Border Protection Agency reported that they were between 60% and 85% complete with creating a streamlined process for refund claims.

Despite the Supreme Court ruling, the Trump administration has continued to impose new tariffs under different legal frameworks, including maintaining those on steel, aluminum, and other goods.

Michigan Industries Hit Hard

Whitmer's new executive directive requires four state agencies to submit reports within 30 days evaluating the ongoing impacts of tariffs on Michigan industries and consumers. This follows a similar assessment ordered in July 2025 that documented significant economic damage across key sectors.

The Michigan Department of Agriculture and Rural Development (MDARD) reported sharp declines in agricultural exports:

• Wheat exports down 89%
• Cherries down 62%
• Apples down 58%
• Soybeans down 46%

The Michigan State Housing Development Authority (MSHDA) tracked a nationwide increase of up to $4 billion on materials necessary for home construction, contributing to a $10,000 increase in home prices.

The Michigan Department of Transportation reported a $218 million increase in costs for road projects attributed to tariffs and economic inflation.

Michigan's auto industry has also been severely impacted, with recent analysis finding that tariffs cost U.S. automakers $35 billion last year alone.

Impact on Working Families

For Michigan working families, the economic impact has been substantial. Tariffs are estimated to have cost each family an average of $1,000 per year, with the pain of these increased costs not offset by any of the promised economic gains from the tariff policy.

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. These broader economic effects have squeezed family budgets while threatening job stability in key industries across the state.

The Michigan Retailers Association (MRA) welcomed Whitmer's directive, with MRA Vice President of Communications Vic Vega stating: "We're very grateful for the governor's support and helping bring awareness to the impacts that tariffs are having on Michiganders, both on the consumer side and the retailer side."

A recent survey from the MRA found that nearly 75% of Michigan retailers reported a negative or strongly negative impact from tariffs since April 2025. More than half of Michigan retailers, 56.1%, also said uncertainty surrounding tariffs has affected their businesses, in addition to the tariffs themselves.

Vega noted that the impacts are "really across the board," including changing item pricing, changing inventory, changes to suppliers, making changes to business processes, delaying pre-planned projects, and postponing maintenance or upgrades.

Federal Refund Process

The U.S. Customs and Border Protection Agency recently told a federal judge that the agency is working on a process to refund tariffs. However, experts warn that getting the money back will be anything but simple for many businesses.

The federal government has assured the courts that they have set aside the $166 billion in unconstitutional tariffs, but they have yet to establish a process for returning those funds that is accessible to all importers who have paid tariffs, including small businesses.

"The pain of increased costs from tariffs has not been offset by any of the promised economic gain," Whitmer said. "This executive directive will show us the damage from these irresponsible tariffs and help get refunds back to Michigan businesses."

Ongoing Concerns

Despite the Supreme Court ruling, the Trump administration has not backed down on its use of tariffs. In fact, the administration has imposed new tariffs following the Supreme Court's ruling, as well as maintaining those on steel, aluminum, and other goods.

Michigan's businesses and residents will continue to pay for this costly policy, with tariffs raising prices on everyday products including cars, appliances, construction materials, and consumer goods.

What's Next

Governor Whitmer's office said the directive will help document the full extent of economic damage from tariffs and push Michigan businesses toward accessing available refunds. The state will continue to call on Congress to set a strategic trade policy that keeps costs down and maintains economic stability.

The four agencies required to submit reports include the Michigan Department of Agriculture and Rural Development, the Michigan State Housing Development Authority, the Michigan Department of Transportation, and the Michigan Department of Treasury. These agencies will compile their findings and submit them to the Governor's office within 30 days of the directive.

As Michigan continues to assess the economic impact of federal trade policy, Governor Whitmer has pledged to work on lowering everyday costs for Michigan families while advocating for fair trade practices at the federal level.