Michigan Governor Orders State Agencies to Help Businesses Seek Refunds on Trump Tariffs Struck Down by Supreme Court
LANSING — Governor Gretchen Whitmer issued an executive directive Thursday directing Michigan state departments to compile information on how federal tariffs have impacted the state's businesses and consumers, and to help Michigan companies access refunds after the U.S. Supreme Court ruled the tariffs unconstitutional.
Executive Directive 2026-02 requires the state's Department of Agriculture and Rural Development, Department of Labor and Economic Opportunity, Department of Transportation, and Department of Treasury to submit reports within 30 days outlining how the tariffs have affected Michigan businesses and residents.
The directive also directs state departments including the Department of Licensing and Regulatory Affairs to figure out ways to ensure registered businesses and employers are aware of the process for seeking tariff refunds.
"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. "I'll continue to call on Congress to set a strategic trade policy that keeps costs down and our economy stable."
Supreme Court Ruling Opens Door for Refunds
In a 6-3 decision in February, the Supreme Court ruled that President Donald Trump illegally used his emergency powers to impose a broad package of global import duties, which he announced one year ago on what he called "Liberation Day." Trump had implemented a separate 10% global tariff and vowed to raise it to 15% in an effort to erase trade deficits and encourage domestic production.
The ruling did not directly address the potential or process for refunds, but Justice Brett Kavanaugh, writing in dissent, warned it could be "messy."
"Refunds of billions of dollars would have significant consequences for the U.S. Treasury," Kavanaugh wrote. "I wish I could say that it's going to get better, but I don't think it will," said Christopher Padilla, former federal trade official who served in President George W. Bush's administration.
Impact on Michigan Businesses Could Be Large
It's not clear how many Michigan businesses may seek refunds from the initial tariffs, but the impact could be large, especially in the auto industry. In a recent federal disclosure, Ford Motor Co. reported a "$2 billion tariff impact" in 2025, though it's unclear which costs were paid by the company or its suppliers.
Similarly, General Motors reported that tariffs increased its costs by $3.1 billion last year.
Since the ruling, U.S. Customs and Border Protection has been working to set up a tariff refund process, which is being overseen by the U.S. Court of International Trade. In a Tuesday filing, a Trump administration official said development of the system is 60% to 85% complete. Once operational, it could take up to 45 days to review and process claims.
Whitmer's Statewide Impact Assessment
As part of Executive Directive 2026-02, Whitmer requires state agencies to assess how the tariffs have affected Michigan's economy. The Whitmer administration has estimated that tariffs have cost the average working family around $1,000 per year due to price increases passed down from companies to consumers.
In a separate 2025 directive, Whitmer ordered state departments to assess tariffs' impact on specific Michigan industries. The state Housing Development Authority found that nationwide increases in material prices raised the cost of homebuilding by $10,000.
The Department of Agriculture and Rural Development noted a dramatic drop in agricultural exports, such as wheat — which saw a year-over-year export decline of 89% — and cherries, which saw year-over-year exports drop by 62%.
Small Businesses Need Help Navigating the Process
Brian Calley, president and CEO of the Small Business Association of Michigan, said that help would be welcomed by businesses that cannot afford legal counsel to work through whatever bureaucracy is created to comply with the decision.
"I think that's the most important thing that could be provided for small businesses, in particular, that will be navigating a system that literally doesn't exist right now," Calley told Michigan Public Radio. "There's so many complex aspects to this."
Uncertainty Remains
Economist Charles Ballard agreed there are still a lot of questions about how the decision will be applied and who might benefit. "I think there probably will be some refunds," Ballard said. "To the extent to which those trickle back to consumers, I don't think we're sure about that, especially since there already so many other inflationary pressures right now, especially in the oil markets."
Sandy Baruha, president and CEO of the Detroit Regional Chamber, believes the Trump administration still has more moves in works. "I would not buy things on credit based on the supposed promise of reimbursement checks coming," Baruha said. "I think he's moving from one avenue to another and he's in the process of doing that right now."
The refund process is being developed by federal officials under the oversight of the U.S. Court of International Trade. Once operational, businesses and individuals can submit claims through the system, which federal officials say aims for a streamlined process to return money without requiring individual lawsuits.
Previous Tariff Impact Reports
Before Thursday's order, the Whitmer administration had already assessed the economic toll of tariffs on specific sectors. A report ordered last year by the governor found that agriculture, home builders and construction were among the Michigan industries hardest hit by the tariffs.
The Department of Agriculture and Rural Development also reported a dramatic drop in agricultural exports, including wheat with a 89% year-over-year export decline and cherries with a 62% year-over-year export drop.
Consumer Costs Mount
The Whitmer administration estimates tariffs have cost the average working family around $1,000 per year due to price increases passed down from companies to consumers. The administration has been pushing for Congress to establish a strategic trade policy that keeps costs down and provides more predictability for businesses and families across Michigan.
As U.S. Customs and Border Protection continues to develop the refund process, state officials say they will be working to make sure all Michigan businesses — from small family-owned operations to large corporations — understand how to access refunds they may be owed.