Great Lakes Wire

State departments in Michigan have released reports showing that federal tariffs are increasing prices across multiple sectors, raising concerns for families, businesses, and workers. The findings come as the U.S. Supreme Court prepares to hear arguments on the legality of current national tariff policies.

Governor Gretchen Whitmer ordered an assessment of how these tariffs affect Michigan's economy. The reports indicate that farmers are experiencing steep declines in agricultural exports—wheat exports fell by 89%, cherries by 62%, apples by 58%, and soybeans by 46%. Additionally, food processors report significant increases in the costs of imported spices and packaging materials, with food prices projected to rise by 3.6% this year.

The housing sector is also seeing higher costs. The Michigan State Housing Development Authority (MSHDA) found that tariffs on materials such as wood, drywall, steel, and appliances—many sourced from abroad—are expected to add $3 billion to $4 billion to national construction costs. These increases have raised the price of new homes by nearly $11,000 on average and tightened the market for existing housing.

Infrastructure projects face similar pressures. The Michigan Department of Transportation (MDOT) estimates that tariffs could raise material costs for road repairs by up to $168 million; when combined with inflation, this figure rises to $218 million. Other state agencies report rising expenses for park maintenance equipment and water infrastructure projects.

Governor Whitmer addressed these concerns: "Michigan families and businesses are all facing rising prices and constant uncertainty because of our chaotic national tariff strategy,” she said. “Our departments have received information from Michiganders across the state showing that tariffs are raising costs, causing supply chain issues, and creating a lot more uncertainty for people and future job-creating projects. While I cannot change the national tariff rate, I will continue advocating for Michigan every chance I get so we can keep lowering costs for families. Let’s fight to grow our economy by pursuing commonsense trade policies to bring jobs home without making crops, construction, or crucial infrastructure projects more expensive.”

The impact extends further into manufacturing and employment. Major auto companies like Stellantis and General Motors have reported substantial losses due in part to tariffs; recently GM laid off 3,400 workers at a Michigan plant. Ford cited an expected $2 billion cost increase related to tariffs and has secured additional credit lines amid economic uncertainty.

Other industries are feeling effects as well: some auto parts suppliers are closing facilities or laying off employees due to increased operating costs from tariffs; a Zeeland clock company with almost a century of history is shutting down operations.

To address affordability challenges more broadly, Governor Whitmer’s administration has implemented several measures over recent years—including tax rollbacks for retirees, expanding tax credits for working families, eliminating certain state taxes on tips and overtime pay, raising the minimum wage ahead of schedule, increasing access to tuition-free education programs, expanding free pre-K access for four-year-olds statewide, reducing car insurance premiums through legislative reforms resulting in refunds to drivers, launching initiatives for affordable financial services targeting low-income households, and removing sales tax on feminine hygiene products.

These actions aim to offset some financial burdens facing residents as policymakers await potential changes following Supreme Court deliberations on federal tariff law.