Michigan Governor Signs Executive Directive to Help Businesses Receive Tariff Refunds

$166 Billion in Unconstitutional Tariffs Hit Michigan Businesses

LANSING — Governor Gretchen Whitmer signed an executive directive on Thursday to help Michigan businesses and employers receive refunds for tariffs they paid under President Trump's now-illegal policy. The U.S. Supreme Court ruled that the tariffs were unconstitutional, and state officials say Michigan businesses have been hit hard by the increased costs.

The executive directive requires four state agencies to submit reports evaluating the ongoing impacts of tariffs on 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. This executive directive will show us the damage from these irresponsible tariffs and help get refunds back to Michigan businesses."

Auto Industry Hit Hardest by Tariffs

The pain of these increased costs from tariffs has rippled through Michigan's economy, especially for manufacturers and the auto industry. Glenn Stevens Jr., executive director of MichAuto, said the auto industry alone lost about $35 billion from tariffs.

"In the auto industry alone, probably about $35 billion overall. That's caused a lot of problems for companies," Stevens said. "Although there's no tangible summary yet, but we see some damage, so we need to collect in the data."

Wayne Fu, associate professor of Decision Science at the University of Michigan-Dearborn, said the consumer has felt the impact, but small businesses have been the real victims.

"The consumer has felt it. But really, the victim has really been these small businesses, not just the big businesses, but the small businesses. And in some cases, it has forced them to go out of business," Fu said.

Refund Process Still Taking Shape

While the federal government has assured courts it will return the $166 billion in unconstitutional tariffs, they have yet to establish a process for returning those funds. The U.S. Customs and Border Protection Agency reported they were between 60 and 85 percent complete with creating a streamlined process for refund claims.

"Right now, to my knowledge, the portal is not even up yet where people can apply for that, and once it is up, it will take a minimum of 45 days," Stevens said. That means businesses may wait months before they see any relief.

State officials say more details on how businesses can apply for refunds are expected in the coming months.

Michigan Industries Hit by Tariffs

The Michigan industries hit hardest by tariffs include farmers and families, with the Michigan Department of Agriculture and Rural Development noting sharp declines in agricultural exports. Wheat exports fell 89 percent, cherries dropped 62 percent, apples declined 58 percent, and soybeans fell 46 percent.

At the same time, prices for spices rose 50 percent, food packaging increased 12 percent, and food prices jumped 3.6 percent at the store.

Homebuilders and homebuyers have also faced higher costs, with the Michigan State Housing Development Authority tracking a nationwide increase of up to $4 billion on materials necessary for home construction.

Ongoing Tariff Reports from 2025

In July 2025, Governor Whitmer signed Executive Directive 2025-5 to begin assessing the impacts of tariffs across Michigan industries. The 2025 reports found that Michigan's industries have been hit hard, with the pain of increased costs not being offset by any promised economic gain.

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.

As tariffs raise prices on everyday products, Governor Whitmer is working hard to lower costs on housing, health care, and education through other state initiatives.