Michigan Governor Orders State Agencies to Track Tariff Impact and Help Businesses Seek Supreme Court Refunds

LANSING — Governor Gretchen Whitmer has signed Executive Directive 2026-2, ordering state agencies to report on the economic impact of federal tariffs and to help Michigan businesses access refunds for billions in tariff payments struck down by the U.S. Supreme Court.

The directive comes on the one-year anniversary of "Liberation Day," when President Donald Trump imposed broad tariffs on imports to the United States in February 2025. The Supreme Court ruled in February 2026 that Trump's use of emergency powers under the International Emergency Economic Powers Act (IEEPA) was unconstitutional.

"The president's tariffs have jacked up costs, and Michiganders have been paying the price," Whitmer said in announcing the directive. "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."

State Agencies Must Report Within 30 Days

Whitmer's order directs four state departments to submit reports within 30 days illustrating how tariffs have impacted Michigan industries and consumers. The agencies include:

  • Department of Agriculture and Rural Development
  • Department of Labor and Economic Opportunity
  • Department of Transportation
  • Department of Treasury

The directive also encourages other departments, agencies, and offices, including the Michigan Economic Development Corporation, to provide reports explaining any impacts they may have perceived.

In July 2025, Whitmer signed a similar executive directive ordering state agencies to evaluate the impact of tariffs on the state's economy. In November 2025, the ordered agencies shared their reports, which showed risks to jobs, risks of higher grocery prices, and risks of more expensive housing. The new reports are expected to cover the last 12-15 months.

Refund Process Underway

The final portion of the executive directive asks the Department of Licensing and Regulatory Affairs and the Department of Labor and Economic Opportunity to help Michiganders access refunds from the tariffs struck down by the U.S. Supreme Court.

A federal refund process for the unconstitutional tariffs is currently being developed by U.S. Customs and Border Protection. According to recent filings with the U.S. Court of International Trade, the process is 60% to 85% complete.

When operational, the system could take up to 45 days to review and process refund applications. U.S. Customs and Border Protection reported that it plans to begin accepting refund requests by April 20, 2026.

The refund system will cover approximately 63% of entries that paid IEEPA tariffs, accounting for roughly $120 billion. Nearly 27,000 importers have registered for digital returns, accounting for 78% of entries with IEEPA tariff payments.

Economic Impact on Michigan

Whitmer's analysis indicates that tariffs have cost each working family in Michigan an average of $1,000 per year through price increases on raw materials, production costs, and consumer goods.

"The pain of these increased costs has not been offset by any of the promised economic gains," Whitmer wrote in the directive. "US 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."

Recent analysis found that tariffs cost U.S. automakers $35 billion last year. Ford Motor Company reported a "$2 billion tariff impact" in 2025, while General Motors reported that tariffs increased its costs by $3.1 billion the same year.

Michigan Exporters Hit Hard

The directive also addresses retaliatory tariffs from trading partners that have hurt Michigan exporters, particularly in agriculture. Michigan farmers selling soybeans, dairy, and other products abroad faced reduced demand when countries like China imposed counter-tariffs on U.S. goods.

According to previous reports from state agencies, wheat saw a year-over-year export decline of 89%, and cherries saw year-over-year exports drop by 62% following federal tariff implementation.

Accessibility for Small Businesses

Whitmer emphasized that the refund process must be accessible to all importers who have paid tariffs, including small businesses and individuals who may not have access to expensive counsel to access refunds they are owed.

"This executive directive will show us the damage from these irresponsible tariffs and help get refunds back to Michigan businesses," Whitmer said. "I'll continue to call on Congress to set a strategic trade policy that keeps costs down and our economy stable. Whether it's making it easier to get your refund or working to lower everyday costs, we've got your back."

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 following federal tariff implementation.

Legal Context

In February 2026, the U.S. Supreme Court ruled 6-3 that President Trump illegally used his emergency powers to impose a broad package of global import duties under IEEPA. The court did not directly address the potential or process for refunds, but in a dissent, Justice Brett Kavanaugh warned it could be "messy."

"Refunds of billions of dollars would have significant consequences for the U.S. Treasury," Kavanaugh wrote in his dissenting opinion.

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.

Related Legal Challenges

Michigan officials have also challenged other recent federal executive orders, including one from President Trump aimed at expanding federal involvement in election oversight. Michigan Attorney General Dana Nessel called the order "blatantly unlawful" and signaled that Michigan would challenge it in court.

Michigan Secretary of State Jocelyn Benson also vowed to fight President Trump's executive order on mail-in voting, which she called "illegal on its face" and argued that states, not the president, should run elections.

Sources

  • Executive Directive 2026-2: Ongoing Impact of Tariffs on Michigan's Economy — https://www.michigan.gov/whitmer/news/state-orders-and-directives/2026/04/02/executive-directive-2026-2-ongoing-impact-of-tariffs-on-michigans-economy
  • Gov. Whitmer orders state agencies to evaluate impacts of tariffs, help Michiganders seek refunds — https://wzzm13.com/article/news/politics/michigan-politics/gov-whitmer-orders-state-agencies-evaluate-impacts-of-tariffs-help-michiganders-seek-refunds/69-c443a7d5-c2a2-4094-ba0e-cb1bda975081
  • Gov. Whitmer Signs Executive Directive to Assess Tariff Impact, Help Michigan Businesses Access Refunds — https://www.michigan.gov/whitmer/news/press-releases/2026/04/02/whitmer-signs-executive-directive-to-assess-tariff-impact-help-businesses-access-refunds
  • Gretchen Whitmer: Michigan to help businesses seek refunds on Trump tariffs — https://bridgemi.com/michigan-government/gretchen-whitmer-michigan-to-help-businesses-seek-refunds-on-trump-tariffs/
  • Whitmer wants new tariff reports, refund help for Michigan businesses — https://mlive.com/news/2026/04/whitmer-wants-new-tariff-reports-refund-help-for-michigan-businesses.html
  • CBP's tariff refund process will take up to 45 days to deliver returns — https://www.supplychaindive.com/news/tariff-refunds-ieepa-cbp-development-progress/816240/
  • Michigan AG vows legal fight over Trump election executive order — https://www.thecentersquare.com/michigan/article_a706b4d6-b9cc-464d-8cd1-0da7299b84a9.html?a=
  • Michigan secretary of state promises "swift action" against Trump's mail-in voting executive order — https://michiganpublic.org/politics-government/2026-04-01/michigan-secretary-of-state-promises-swift-action-against-trumps-mail-in-voting-executive-order