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

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

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

The directive, signed on April 2, 2026, instructs state departments to submit reports within 30 days illustrating how tariffs have impacted Michigan industries and consumers. It also directs state departments to use their available channels to ensure that registered businesses and employers know 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."

The executive directive follows the Supreme Court's decision in Learning Resources, Inc. v. Trump, after which the U.S. Court of International Trade ordered the federal government to issue refunds. 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.

Economic Impact of Tariffs

Whitmer's office said the pain of increased costs from tariffs has not been offset by any of the promised economic gain. A recent survey from the Michigan Retailers Association found nearly 75% of Michigan retailers reported a negative or strongly negative impact from tariffs since April 2025.

According to nonpartisan data from the Yale University Budget Lab, the tariffs brought about $166 billion in revenue collected by the federal government. The directive is intended both to document the economic damage and to help businesses navigate the refund process.

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

Previous reports ordered by the governor under an executive directive from July 2025 found that tariffs increased the cost of raw materials, raised production expenses, and limited access to foreign markets, particularly for agricultural exporters facing retaliatory tariffs.

State data showed that Michigan's industries hit hardest by tariffs include:

• Farmers and families — with the Michigan Department of Agriculture and Rural Development noting sharp declines of agricultural exports (wheat — 89%, cherries — 62%, apples — 58%, soybeans — 46%) and higher prices of spices (+50%), food packaging (+12%), and food (+3.6%) at the store.

• Homebuilders and homebuyers — with the Michigan State Housing Development Authority tracking a nationwide increase of up to $4 billion on materials necessary for home construction.

Whitmer's office said tariffs cost U.S. automakers $35 billion last year and increased costs for working families by about $1,000 annually. It also pointed to slower GDP growth and weaker job gains in 2025 compared to previous years.

Business Response

The Michigan Retailers Association 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.

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 said. "There's so many complex aspects to this."

Sandy Baruha, president and CEO of the Detroit Regional Chamber, noted that there are still many questions about how the Supreme Court decision will be applied.

"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."

Republican Response

Despite the court ruling, tariffs remain a central part of the Trump Administration's trade strategy, with additional duties imposed after the court ruling.

Michigan House Speaker Matt Hall, R-Richland Township, has defended the president's trade policy. "When you have tariffs, you are trying to disincentivize the purchase of foreign cars and foreign components, and you're trying to incentivize the purchase of domestic cars in Michigan and domestic manufacturing," Hall said.

"That's exactly what's happening," Hall added. "The tariffs are creating jobs in the Michigan automotive manufacturing industry, and so that's a good thing. The tariffs are working."

Whitmer's Continued Push

Whitmer has repeatedly criticized tariffs as a driver of higher prices and economic instability, including in her State of the State address earlier this year.

"People are nervous about the national economy, and, while your paycheck may have grown, the cost of everything else has too," she said, adding that "many middle class families tread water, struggle to pay the bills, find good jobs and get ahead... Tariffs have jacked up prices."

Whitmer also pointed to the court's decision as a potential turning point, saying at the time, "I'm hopeful that last week's Supreme Court decision will force Congress and the president to work out a more strategic trade policy."

Despite the court ruling, Whitmer said she will continue urging federal action to end those policies, while focusing on mitigating the impact in Michigan.

"I'll continue to call on Congress to set a strategic trade policy that keeps costs down and our economy stable," Whitmer said. "Whether it's making it easier to get your refund or working to lower everyday costs, we've got your back."

The governor's office also made appointments to numerous boards and commissions on the same day, including the Michigan Board of Medicine, the Michigan Gaming Control Board, the Michigan State Housing Development Authority Board of Directors, and the Michigan Veterans' Facility Authority Board of Directors.