Governor Takes Action on Fuel Prices and Trade Tariffs
LANSING — In response to soaring gas prices driven by the Iran war and global market disruptions, Michigan Governor Gretchen Whitmer signed two executive orders Thursday aimed at providing relief to Michigan families and businesses.
The first order, Executive Order 2026-4, declares a state of energy emergency and temporarily suspends fuel blend requirements in eight Southeast Michigan counties, allowing the sale of higher vapor pressure gasoline which typically costs 10 to 20 cents less per gallon. The directive also directs the state to help businesses seek refunds on federal tariffs imposed during the Trump administration that were recently struck down by the U.S. Supreme Court.
The eight counties affected by the energy emergency order — Wayne, Oakland, Macomb, Washtenaw, Livingston, Monroe, St. Clair, and Lenawee — are home to approximately five million residents, accounting for nearly half of the state's population. Michigan drivers outside these areas will also see fuel savings since they are already permitted to sell cheaper fuel blends without seeking a waiver.
Rising Gas Prices Due to Iran War
The executive order comes as gas prices in Michigan have spiked to approximately $3.89 per gallon, up roughly 30 percent from earlier levels and the highest since summer 2023. According to the governor's administration, Michigan drivers are paying 97 cents per gallon more than this time last month and 82 cents per gallon more than this time last year.
The war between the U.S. and Israel and Iran, which began in late February, has disrupted global oil markets and shut down the Strait of Hormuz, formerly one of the world's biggest shipping corridors for fuel that processed up to 21 million barrels of oil per day.
"This is a temporary and targeted step. It does not reflect a change in Michigan's commitment to clean air or fuel standards. It is a short-term measure to address rising fuel costs and supply constraints caused by the Iran war," the executive order states.
Energy Emergency Saves Money at the Pump
The change brings Michigan in line with a temporary waiver issued by the U.S. Environmental Protection Agency, enabling access to a broader pool of gasoline and saving motorists money. The EPA waiver allows the production, distribution, and sale of different gasoline blends.
Anyone who suspects problems at the pump is encouraged to call the Michigan Department of Agriculture and Rural Development's 24-hour hotline for reporting complaints at 1-800-MDA-FUEL (1-800-632-3835).
Governor Whitmer emphasized the immediate relief the order provides: "Right now, countless Michigan families are struggling with rising costs on the essentials, from groceries to gas. As governor, I can't end a war overseas or undo bad policies at the federal level that led to higher gas prices, but I will do what I can to try to give families a break. To provide relief, I'm issuing an executive order taking a few actions with one aim: saving drivers money at the pump."
Tariff Refunds for Michigan Businesses
The second executive order, Executive Directive 2026-02, instructs several state departments to help Michigan businesses pursue refunds from tariffs imposed by the Trump administration that were recently struck down by the U.S. Supreme Court. The directive came after a February Supreme Court ruling that found former President Donald Trump improperly used emergency powers to enact sweeping import tariffs.
The governor's order instructs several state departments — including Agriculture and Rural Development, Labor and Economic Opportunity, Transportation, and Treasury — to assess how the tariffs affected Michigan's economy and report their findings within 30 days. State officials say ensuring access to refunds will be especially important for smaller businesses that may lack legal or financial resources to navigate complex claims.
The order emphasizes making the process accessible to all eligible importers, including small businesses and individuals who may not have access to expensive counsel to access refunds they are owed.
Economic Impact of Tariffs
In a recent interview with Bridge Michigan, former federal trade official Christopher Padilla said small businesses have likely borne the brunt of tariff costs "because larger companies have been able to mitigate some of the effects of tariffs by shifting their supply chains, by passing off some of the cost of the tariffs to others in the supply chain or to their end customers."
Businesses will continue to face uncertainty, he predicted. "I wish I could say that it's going to get better, but I don't think it will," said Padilla, who served in President George W. Bush's administration. "I think we're in for three more years of this, because there aren't a lot of signs that the administration's policy is going to get a lot more predictable."
Michigan's Estimated Costs
The Whitmer administration estimated tariffs have cost the average working family around $1,000 per year due to price increases passed down from companies to consumers. 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.
Ongoing State Assessment
Whitmer previously ordered state departments to assess tariffs' impact on specific Michigan industries in a 2025 directive. The state Housing Development Authority found 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%.
In Thursday's order, the Whitmer administration requires the state's Agriculture and Rural Development, Labor and Economic Opportunity, Transportation, and Treasury departments to submit a report in the next 30 days outlining how tariffs have affected Michigan businesses and residents. The Department of Labor and Economic Opportunity, as well as the Department of Licensing and Regulatory Affairs, are also tasked with figuring out ways to ensure that 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 announcing the executive directive. "I'll continue to call on Congress to set a strategic trade policy that keeps costs down and our economy stable."
Federal Refund Process Underway
Since the Supreme Court 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 percent to 85 percent complete. Once operational, it could take up to 45 days to review and process claims.
The governor acknowledged state leaders cannot control global energy markets or federal trade policies, but emphasized the executive orders are one step the state can take to ease pressure on household budgets and help Michigan businesses recover costs.