Michigan Governor Issues Directive to Help Businesses Recover Tariff Refunds After Supreme Court Ruling

Governor Whitmer Signs Executive Directive on One-Year Anniversary of Tariffs

LANSING — On the one-year anniversary of what supporters called "Liberation Day," Michigan Governor Gretchen Whitmer signed an executive directive aimed at helping Michigan businesses recover refunds from tariffs deemed unconstitutional by the U.S. Supreme Court.

The directive, issued on April 2, 2026, instructs state departments to submit reports illustrating how tariffs have impacted Michigan industries and consumers. It also directs state agencies to ensure businesses and employers understand how to seek refunds under the process the federal government is developing.

"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."

Economic Impact on Michigan Industries

The pain of increased costs from tariffs has not been offset by any of the promised economic gain, according to the governor's office. 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.

Michigan's industries have been hit particularly hard. A recent analysis found that the tariffs cost U.S. automakers $35 billion last year alone. For working families, tariffs are estimated to have cost an average of $1,000 per year through higher prices for everyday products.

Key findings from earlier tariff reports submitted under Executive Directive 2025-5 include:

• Farmers and families: MDARD noted sharp declines in agricultural exports — wheat down 89%, cherries 62%, apples 58%, and soybeans 46%. Meanwhile, prices for spices increased 50%, food packaging rose 12%, and food prices increased 3.6% at stores.

• Homebuilders and homebuyers: MSHDA tracked a nationwide increase of up to $4 billion on materials necessary for home construction.

• Michigan retailers: A survey from the Michigan Retailers Association found 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%, said uncertainty surrounding tariffs has affected their businesses.

The Refund Process and Challenges

The refunds fall under the International Emergency Economic Powers Act, or IEEPA. In February, a U.S. Supreme Court decision struck down most of President Donald Trump's tariff policy under the act. A lower court has since ruled that the government must return those funds, opening the door for businesses to find financial relief.

The federal government reports it's getting closer to finishing the system to process refund claims. In a recent filing with the U.S. Court of International Trade, a U.S. Customs and Border Protection official detailed that the processing system is still in development, with a goal of taking up to 45 days to review and process refund claims once operational.

Dr. Jeff Rightmer, an associate professor of teaching at Wayne State University's Mike Ilitch School of Business, believes the process will be long and complex. "The government's great at taking in money. It's a lot harder to give back money," Rightmer said.

Rightmer explained that the Supreme Court addressed the legality of the tariffs but stopped short of spelling out what happens to the money already collected. "They ruled on the legality of the tariffs under the War Act and ruled that we're not at war with these countries, so you can't use this. So, they struck that down. But they didn't say anything about, 'OK, you've collected all of these. What are you going to do with them? Do you have to give it back or anything?'" he said.

Crucially, only entities listed as importer of record — like big-box stores or small businesses — are eligible for refunds, not customers who may have absorbed the costs.

Michigan Small Businesses Feel the Squeeze

For Detroit-area small business owners, the tariff fight is deeply personal. Sherrie Savage, founder of The Coloring Museum in Detroit, launched the concept from her self-published coloring book and grew it into a business after pop-up coloring events showed real community demand.

In 2025, Savage says she spent well over $10,000 in tariff costs. While she has worked to keep prices reasonable, she acknowledges some of those costs have been passed on to customers. She uses various suppliers in an effort to keep costs down.

For Savage, a refund would mean more than padding her bottom line. "Everything," Savage said. "As I mentioned to you before, one of the things that I really would have liked to happen during the holiday season was to give back to my employees some bonuses. The Coloring Museum is all about social impact, it's about community, and then also about my staff and making sure that they're taken care of along with their families."

Jennifer Harmon, owner of Jen's Finest Things in Detroit, took a different approach. Rather than pass tariff costs on to her customers, she absorbed them — eating roughly 20 percent of her supply costs last year. Her business sells handmade beaded jewelry, custom earrings, patches, sunglasses and accessories with pricing designed to stay accessible to everyone.

"A refund on these tariffs would mean a lot because it would give me back some of the profit that I would have made. It will allow me to have a profit versus just a small amount, because again, I didn't apply it to the customer," Harmon said.

Despite the financial pressure, her customers never stopped showing up. "Even though the tariffs were there, my customers still were supporting me. So that was the blessing on the one hand," Harmon said.

Michigan Retailers Welcome Governor's Support

The Michigan Retailers Association (MRA) welcomed the directive. "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 on the retailer side," MRA Vice President of Communications Vic Vega said.

Vega noted that the impacts of tariffs are truly across the board — from changing item pricing to adjusting inventory, from changing suppliers to making changes to business processes, and even delaying pre-planned projects like maintenance or upgrades to technology.

What Businesses Should Know

Not only does CBP have to pay back eligible importers, it also must do so with interest. The U.S. Chamber of Commerce has published guidance for small businesses navigating the refund process, and CBP has resources available on its website.

One final note of caution: experts warn scammers may try to take advantage of the moment. Any business working with a customs broker should verify that broker's legitimacy before moving forward.

The governor's office continues to call on Congress to set a strategic trade policy that keeps costs down and the economy stable. Whether it's making it easier to get your refund or working to lower everyday costs, Whitmer emphasized that the state has "your back."

This article was updated on April 6, 2026.