Governor Whitmer Orders State Agencies to Assess Tariff Damage as West Michigan Businesses Seek Refunds

Governor Gretchen Whitmer signed an executive directive Thursday marking the one-year anniversary of President Donald Trump's Liberation Day tariffs that were struck down by the U.S. Supreme Court in February.

The order instructs state departments to report on how tariffs have impacted Michigan industries and consumers. It also directs agencies to help businesses navigate the refund process for the $166 billion in now-unconstitutional tariff revenues.

"This executive directive will show us the damage from these irresponsible tariffs and help get refunds back to Michigan businesses," Whitmer wrote.

$1,000 Per Year Hit on Working Families

Whitmer's office said the pain of increased costs from tariffs has not been offset by any of the promised economic gains. A recent survey from the Michigan Retailers Association found nearly 75% of Michigan retailers reported a negative or strongly negative impact from tariffs since April 2025.

More than half of Michigan retailers, 56.1%, also said uncertainty surrounding tariffs has affected their businesses, in addition to the tariffs themselves.

"We're very grateful for the governor's support and helping bring awareness to the impacts that tariffs are having on Michiganders, both on the consumer side and on the retailer side," said Vic Vega, vice president of communications at the Michigan Retailers Association.

The Yale University Budget Lab estimated the tariffs brought about a loss of between $450 and $570 for the average U.S. household. Michigan households have paid an average of $1,000 per year more as a result of tariffs, according to Whitmer.

Four Departments to Submit Reports

The executive directive gives four state departments 30 days to submit a report illustrating the way that the use of tariffs has impacted Michigan industries and consumers as well as raised costs for the state, households and businesses.

The departments tasked with doing so include:

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

Other agencies, including the Michigan Economic Development Corporation, should review data they have on hand that might shed light on the impact of new tariffs on the questions above and, if so, submit to Whitmer a report explaining that impact.

The Michigan Economic Development Corporation will also be tasked with reviewing data to assess the impact of new tariffs on manufacturing, agriculture, and other key Michigan industries.

Helping Businesses Navigate Refund Process

The directive instructs the departments of Labor and Economic Opportunity and Licensing and Regulatory Affairs to be prepared to aid businesses and employers seeking refunds as the federal government makes clear its process for receiving refunds.

The federal refund system is 60 to 85% complete, according to the U.S. Customs and Border Protection's most recent update. When it is up and running, payments may take up to 45 days to review and process, according to recent reporting by The Hill.

Whitmer's order directs state departments to use available channels to ensure that registered businesses and employers know how to seek refunds under a new process the federal government is developing.

Michigan Auto Sector Under Fire

Michigan House Speaker Matt Hall, when asked for a response to Whitmer's order Thursday, touted Trump's tariffs as having secured new investments in the U.S., including in auto manufacturing, and resulting in 20 trade deals that treated the U.S. more fairly.

He did not address Whitmer's order directly.

"Michigan's auto sector is stronger with President Trump putting America first," said Hall, a Republican from Kalamazoo County.

A recent analysis found that tariffs cost U.S. automakers $35 billion last year. Michigan's industries have been hit hard, with a recent analysis finding that the tariffs cost U.S. automakers $35 billion last year.

Uncertainty Looms Over Refund Process

The Trump administration has set aside $166 billion in tariff revenues, but has yet to establish a process for returning those funds, Whitmer said in her directive.

Any 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, the directive said.

Whitmer noted that her office has been working with the federal government to ensure that Michigan businesses understand how to navigate the refund process. The state is also working to ensure that all Michiganders have access to the refund process.

Retailers Hit Hard by Tariff Costs

According to the nonpartisan Yale University Budget Lab, the tariffs brought about a loss of between $450 and $570 for the average U.S. household. Retailers have had to get creative to keep prices as affordable as possible while trying to offset the costs of higher raw materials and production expenses.

"We're very grateful for the governor's support and helping bring awareness to the impacts that tariffs are having on Michiganders, both on the consumer side and on the retailer side," said Vic Vega, vice president of communications at the Michigan Retailers Association.

Retailers have reported having to change item pricing, change inventory, or change their suppliers. Other members have also shared making changes to the business processes or delaying pre-planned projects, things like maintenance or upgrades to their business, technology advancements, Vega said.

Tariffs Hit Michigan Agriculture

The directive also highlighted the impact of retaliatory tariffs from trading partners on Michigan 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 Whitmer.

This lowered farm revenues and created uncertainty in rural communities across Michigan, including West Michigan.

Michigan Retailers Association Welcomes Governor's Directive

The Michigan Retailers Association welcomed the governor's directive as a significant step toward helping Michiganders recover from the economic damage caused by tariffs.

"We're very grateful for the governor's support and helping bring awareness to the impacts that tariffs are having on Michiganders, both on the consumer side and on the retailer side," said Vic Vega, vice president of communications at the Michigan Retailers Association.

The association has been working with Whitmer's office to ensure that retailers understand how to navigate the refund process and receive the money they are owed.

Next Steps for Businesses

Whitmer's directive sets the stage for state agencies to work with businesses across Michigan to ensure they understand how to seek refunds from the federal government. The state is also working to provide guidance on the refund process to help businesses recover the money they have already paid in tariffs.

The federal refund system is 60 to 85% complete, according to the U.S. Customs and Border Protection's most recent update. When it is up and running, payments may take up to 45 days to review and process, according to recent reporting by The Hill.

Whitmer's order directs state departments to use available channels to ensure that registered businesses and employers know how to seek refunds under a new process the federal government is developing.