LANSING, Mich. (WLNS)– Michigan Governor Gretchen Whitmer signed an executive directive for state offices to investigate, calculate, and report the latest impact of tariffs on the Michigan economy.
Gov. Whitmer’s office claims the tariff rate has raised costs and weakened the supply chain, impacting sectors in the state, such as the auto industry.
“I have heard from countless Michiganders alarmed by the way Washington Republicans are handling tariffs,” said Governor Gretchen Whitmer in a news release sent to 6 News.
“Tariffs have weakened Michigan supply chains, increased costs for family budgets, and caused major firms to scale back operations in Michigan. While I can’t control tariffs, I can make sure you know how they will affect your life and do everything in my power to help. That’s why I’m signing an executive directive to report the updated impact of these tariffs on Michigan’s economy, so we can protect our economy and lower costs for Michigan families. I’ll continue fighting to grow Michigan’s economy with common-sense trade policies that lower costs for Michiganders.”
The directive order comes before President Trump’s August 1, 2025, deadline. The order outlines the impact on Michigan’s economy:
Impact of Tariffs on Michigan Manufacturing
- The Trump Administration’s tariffs have already hit Michigan’s manufacturing industry. Big Three auto companies such as Stellantis and GM have reported significant losses, citing tariffs as a major culprit. Ford is taking out a new line of credit due to economic uncertainty and said tariffs will cost $2 billion. Last week, an auto parts firm announced that tariff-driven conditions would force it to close its facility in Michigan and lay off over a hundred employees. Even a Zeeland clock company that has operated in Michigan for nearly a century is closing its doors due to tariffs.
Impact of Tariffs on Michigan Agriculture
- The Trump Administration’s tariffs have also impacted Michigan farmers and agriculture, which generated $2.9 billion in exports for Michigan last year. Michigan agriculture relies on open trade with Canada and Mexico for crop nutrients, feed ingredients, fertilizer, and more. Michigan is also a top exporter of soybeans to China. The National Soybean Association projected a nearly 52% decline in soybean exports due to the trade war, which will cost Michigan farmers approximately $100 million each year.
Impact of Tariffs on Michigan’s Economy
- Companies and consumers will bear the brunt of the tariffs as costs continue to skyrocket. Largely, companies have been working through inventory purchased before tariffs were enacted. However, with this inventory running out, certain U.S. employers could face a direct cost of $82.3 billion because of the federal tariff plans. This could cause large and small companies to lay off workers, raise prices, or even close operations.
Whitmer reports that consumers will be hit the hardest as companies are projected to pass on 60% of their tariff cost to consumers.
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