Governor Orders State Agencies to Evaluate Tariff Impact, Assist Businesses with Refund Process

LANSING — Governor Gretchen Whitmer has signed a new executive directive requiring Michigan state departments to help businesses and employers receive refunds for federal tariffs struck down by the U.S. Supreme Court, while also ordering comprehensive reports on the economic damage caused by the controversial tariff policy.

The executive directive, signed on April 2, 2026, comes one year after President Donald Trump announced what he called "Liberation Day" when he imposed a broad package of global import duties using emergency powers under the International Emergency Economic Powers Act (IEEPA). In February 2026, the U.S. Supreme Court ruled the tariffs unconstitutional, with Justice Elena Kagan writing in the majority opinion that President Trump had exceeded his authority without Congressional authorization.

Direct Impact on Michigan Businesses

The directive orders the Department of Agriculture and Rural Development, the Department of Labor and Economic Opportunity, the Department of Transportation, and the Department of Treasury to submit detailed reports within 30 days outlining how tariffs have impacted Michigan industries and consumers. These reports will cover the last 12-15 months of tariff effects.

According to the Whitmer administration's estimates included in the directive, tariffs have cost the average working family approximately $1,000 per year due to price increases passed down from companies to consumers. The directive specifically notes that tariffs have led to higher prices for cars, appliances, construction materials, and consumer products across Michigan.

Michigan's Manufacturing and Agriculture Hit Hard

Michigan's key industries have been particularly affected by the tariff policy. A recent analysis found that tariffs cost U.S. automakers approximately $35 billion last year alone. Ford Motor Co. reported a "$2 billion tariff impact" in its federal disclosure, though it remains unclear which costs were paid by the company versus its suppliers. Similarly, General Motors reported that tariffs increased its costs by $3.1 billion last year.

The agriculture sector has also suffered significantly from retaliatory tariffs imposed by trading partners. The Michigan Department of Agriculture and Rural Development previously reported a dramatic drop in agricultural exports, with wheat exports declining by 89% year-over-year and cherry exports dropping by 62%. Michigan farmers selling soybeans, dairy, and other products abroad faced reduced demand when countries like China imposed counter-tariffs on U.S. goods, lowering farm revenues and creating uncertainty in rural communities.

Creating an Accessible Refund Process

A key provision of the new directive asks the Department of Licensing and Regulatory Affairs (LARA) and the Department of Labor and Economic Opportunity to figure out ways to ensure that registered businesses and employers are aware of the process for seeking tariff refunds. Governor Whitmer wrote in the order:

"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."

The directive emphasizes that the refund system must be accessible to small businesses and individuals who might otherwise be unable to navigate the bureaucratic process without legal representation.

Federal Refund Process Still Being Developed

Since the Supreme Court ruling, U.S. Customs and Border Protection has been working to establish a tariff refund process, overseen by the U.S. Court of International Trade. According to a recent filing by a Trump administration official, the development of the refund system is 60% to 85% complete. Once operational, the process could take up to 45 days to review and process claims.

Justice Brett Kavanaugh, who dissented from the Supreme Court's decision striking down the tariffs, warned in his opinion that refunds of billions of dollars would have "significant consequences for the U.S. Treasury," though he acknowledged the need to address the issue.

Continued Economic Pressure

The directive also highlights that despite the Supreme Court ruling and the administration's assurances that it has set aside the unconstitutional tariffs, new tariffs have been imposed following the ruling, and those on steel, aluminum, and other goods remain in place. Michigan's businesses and residents will continue to pay for these costly policies.

The Whitmer administration's previous reports on tariff impacts have shown the broader economic consequences:

  • U.S. GDP grew at a slower rate in 2025 than in preceding years
  • Companies added fewer jobs in 2025 than at any point in the last 20 years
  • Michigan's industries faced slower economic growth in tariff-exposed sectors
  • Added financial pressure on Michigan households already managing rising living costs

The combined effect has been slower economic growth in tariff-exposed sectors and added financial pressure on Michigan households.

Call for Strategic Trade Policy

Governor Whitmer continued to call on Congress to set a strategic trade policy that keeps costs down and the economy stable. Her statement on the directive emphasized:

"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."

Previous Tariff Impact Assessment

In July 2025, Governor Whitmer signed a similar executive directive ordering state agencies to evaluate the impact of tariffs on the state's economy. In November, the ordered agencies shared their reports, which showed risks to jobs, risks of higher grocery prices, and risks of more expensive housing. The Michigan Economic Development Corporation and other agencies and offices, along with departments who provided reports in response to the previous executive directive, are encouraged to also submit reports explaining any impacts they may have perceived.

Constitutional Basis

The directive is issued under the Michigan Constitution of 1963. Section 1 of Article 5 vests the executive power of the State of Michigan in the governor, and Section 8 of Article 5 places each principal department under the supervision of the governor. Acting under these constitutional provisions and Michigan law, Governor Whitmer has directed the relevant state departments to carry out the assessment and assistance outlined in the executive directive.

The economic impact of tariffs on Michigan remains a significant issue as the state continues to navigate the aftermath of federal trade policy decisions that have affected thousands of businesses and families across the state.