Governor Whitmer Signs Executive Directive to Help Michigan Businesses Seek Tariff Refunds

# Governor Whitmer Signs Executive Directive to Help Michigan Businesses Seek Tariff Refunds

LANSING — Governor Gretchen Whitmer on Thursday signed an executive directive requiring state departments to help Michigan businesses and employers receive refunds for federal tariffs paid in the last year.

The action came one year after what President Donald Trump called Liberation Day, when he imposed emergency tariffs on American imports. The U.S. Supreme Court has since ruled the move illegal in Learning Resources, Inc. v. Trump.

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

Whitmer directs four state agencies to report within 30 days on how tariffs have impacted Michigan industries and consumers. The Department of Labor and Economic Opportunity, along with the Department of Licensing and Regulatory Affairs, must ensure registered businesses know how to access the federal refund process.

Federal Refund Process Under Development

Since the Supreme Court ruling, the U.S. Court of International Trade has ruled that the federal government must issue refunds for tariffs paid under the unconstitutional International Emergency Economic Powers Act.

U.S. Customs and Border Protection reported they are between 60 percent and 85 percent complete with creating a streamlined process for refund claims. Once operational, the system could take up to 45 days to review and process claims.

Any process must be accessible to all importers who have paid tariffs, including small businesses and individuals who may not have access to expensive counsel to access refunds they are owed, Whitmer wrote in the order.

Tariffs Cost Michigan Working Families $1,000 Per Year

The executive directive comes after earlier analysis showing the human cost of Trump administration tariffs. A recent interview with Bridge Michigan found tariffs have cost the average working family around $1,000 per year due to price increases passed down from companies to consumers.

Michigan automakers have been hit particularly hard. Ford Motor Co. reported a $2 billion tariff impact in 2025. General Motors reported tariffs increased its costs by $3.1 billion last year. Combined, the analysis found tariffs cost U.S. automakers $35 billion last year.

Michigan Industries Hit Hardest

Whitmer signed Executive Directive 2025-5 in July to assess tariff impacts across Michigan industries. The reports revealed dramatic declines in agricultural exports:

• Wheat: 89 percent year-over-year export decline
• Cherries: 62 percent drop
• Apples: 58 percent decline
• Soybeans: 46 percent drop

Meanwhile, prices for some agricultural products rose sharply:

• Spices: +50 percent
• Food packaging: +12 percent
• Food: +3.6 percent

Homebuilders also face increased costs. The state Housing Development Authority found nationwide increases in material prices raised the cost of homebuilding by up to $10,000 due to higher prices for construction materials.

Economic Pain Not Offset by Promised Gains

The directive notes that the pain of increased costs has not been offset by any economic gains from tariffs. U.S. 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.

The president's tariffs have jacked up costs, and Michiganders have been paying the price, Whitmer said.

Continuing Battle Over Trade Policy

Whitmer continues to call on Congress to set a strategic trade policy that keeps costs down and stabilizes the economy. The administration has not backed down on tariffs following the Supreme Court ruling, maintaining those on steel, aluminum, and other goods.

The federal government collected approximately $166 billion in tariff revenue. Whitmer is working to ensure Michigan businesses and residents get their refunds while the federal government develops the refund process.

Sources: michigan.gov, bridgemi.com, wne.com