Michigan Governor Signs Tariff Refund Directive as Gas Prices Surge to $3.89 Per Gallon

Governor Issues Executive Directive to Help Businesses Access Tariff Refunds Amid Rising Costs

LANSING — On the one-year anniversary of Liberation Day, Michigan Governor Gretchen Whitmer signed an executive directive aimed at helping state businesses access refunds for tariffs they paid under the former Trump administration's trade policy. The move comes as Michigan families face soaring gas prices and increased costs across multiple sectors of the economy.

The executive directive, signed April 2, requires reports from four state agencies evaluating the ongoing impacts of tariffs on Michigan industries and consumers. Governor Whitmer's announcement marked the second major action the governor has taken in response to federal trade policy in the past week.

"The president's tariffs have jacked up costs, and Michiganders have been paying the price," Governor Whitmer said in a press conference at the State Capitol. "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."

Supreme Court Rules Tariffs Unconstitutional

The directive comes after the U.S. Supreme Court ruled in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) could not be used to impose tariffs without Congressional action. The Court found that the United States was not at war with the countries affected by the tariffs, making the use of IEEPA unconstitutional.

Following the Supreme Court decision, the U.S. Court of International Trade ruled that the federal government must issue refunds for the unconstitutional tariffs. In recent updates to the court, the U.S. Customs and Border Protection Agency reported they were between 60% and 85% complete with creating a streamlined process for refund claims.

However, experts warn the refund process will be complex and lengthy. Dr. Jeff Rightmer, associate professor of teaching at Wayne State University's Mike Ilitch School of Business, noted that while companies are expected to pay tariffs within 10 business days of goods crossing the border, getting money back is a different story.

"The government's great at taking in money. It's a lot harder to give back money," Rightmer said.

Small Businesses Feel the Squeeze

For Detroit-area small business owners, the tariff fight has been deeply personal. Sherrie Savage, founder of The Coloring Museum in Detroit, reported spending over $10,000 in tariff costs in 2025 alone. While Savage has worked to keep prices reasonable for customers, she has had to absorb some costs herself.

"Everything. So, 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," Savage said. "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, 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. A refund, Harmon said, would go straight back into the business.

"The climate for small business owners right now is that we need your support. Regardless if it's sharing our information, referring somebody to us, or even making a purchase — being it a small purchase or a big purchase — will help us all," Harmon said.

Broader Economic Impact

The tariff pain has rippled through Michigan's economy in multiple ways. According to recent analysis, the tariffs cost U.S. automakers $35 billion last year. For working families, tariffs have cost each family on average $1,000 per year, leading to higher prices for cars, appliances, construction materials, and consumer products.

Michigan's agricultural sector has been hit particularly hard. The Michigan Department of Agriculture and Rural Development (MDARD) noted sharp declines in agricultural exports, with wheat down 89%, cherries down 62%, apples down 58%, and soybeans down 46%. At the same time, prices for spices increased 50%, food packaging rose 12%, and food prices climbed 3.6%.

Homebuilders and homebuyers have faced increased costs as well, with the Michigan State Housing Development Authority (MSHDA) tracking a nationwide increase of up to $4 billion on materials necessary for home construction.

Slower Economic Growth

The pain of these increased costs has not been offset by any of the promised economic gains. 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. Michigan's industries have been hit hard, with the tariffs cost U.S. automakers $35 billion last year.

Despite the uncertainty and disruption driving up prices in the economy and the lack of any Congressional involvement, the Trump administration has not backed down on its use of tariffs. In fact, the administration has imposed new tariffs following the Supreme Court's ruling, as well as maintaining those on steel, aluminum, and other goods.

Gas Prices Soar Amid Iran War

In addition to the tariff directive, Governor Whitmer also issued Executive Order 2026-4 on the same day, declaring an energy emergency in response to skyrocketing gas prices. The order comes as gas prices in Michigan have risen to $3.89 per gallon, up from $2.99 per gallon — a spike of approximately 30 percent and the highest since the summer of 2023.

The Iran war has disrupted global oil markets and shut down the Strait of Hormuz, formerly one of the biggest global shipping corridors for fuel that processed up to 21 million barrels of oil per day. As a result, gas prices have risen in Michigan to $3.89 per gallon.

Executive Order 2026-4 suspends the May 1 requirement for lower vapor pressure gasoline in Wayne, Oakland, Macomb, Washtenaw, Livingston, Monroe, St. Clair, and Lenawee counties, increasing access to less expensive gas which will save motorists money at the pump. These eight counties account for approximately five million Michiganders, which will translate into savings for nearly half of all drivers in the state.

"This is yet another reason the legislature needs to pass a budget that continues tax cuts for working families and retirees, delivers property tax relief for seniors, and gives Michigan families a sales tax holiday on school supplies," Governor Whitmer said. "Let's keep working together to lower costs and provide relief."

The EPA has issued a temporary waiver of federal vapor pressure requirements to allow the production, distribution, and sale of different gasoline blends. Executive Order 2026-4 brings the state in line with the EPA waiver, enabling access to a broader pool of gasoline and saving motorists money.

Anyone who suspects problems at the pump is encouraged to call MDARD's 24-hour hotline for reporting complaints, 1-800-MDA-FUEL (1-800-632-3835).

What Businesses Should Know

The U.S. Chamber of Commerce has published guidance for small businesses navigating the refund process, and CBP has resources available on its website. Experts warn that scammers may try to take advantage of the moment, so any business working with a customs broker should verify that broker's legitimacy before moving forward.

The refund process — and who gets it — remains uncertain. Only entities that are listed as importer of record, like big-box stores or small businesses, are eligible, not customers who may have absorbed the costs. The Supreme Court addressed the legality of the tariffs but stopped short of spelling out what happens to the money already collected.

Dr. Rightmer explained that the refund process will be long and complex. While companies are expected to pay tariffs within 10 business days of goods crossing the border, getting money back is a different story.

"[The] government's great at taking in money. It's a lot harder to give back money," Rightmer said.

Next Steps

The executive directive instructs departments to submit a report illustrating the way that the use of tariffs has impacted Michigan industries and consumers within 30 days. 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.

As the federal government works to establish a refund process, Governor Whitmer is continuing to push for legislative action to lower costs on housing, health care, and education for Michigan families.