Michigan Governor Orders State Agencies to Help West Michigan Businesses Seek Refunds on Supreme Court-Struck-Down Tariffs

Governor's Executive Directive Targets Tariff Costs on Michigan Households and Businesses

LANSING, Mich. — Governor Gretchen Whitmer issued an executive directive Thursday marking one year after President Donald Trump's "Liberation Day" tariffs were struck down by the U.S. Supreme Court as unconstitutional. The directive instructs state departments to submit reports illustrating the impact of tariffs on Michigan industries and consumers, and directs state agencies to ensure businesses know how to seek refunds from the federal government.

The Supreme Court ruled in February that Trump's tariffs imposed under the International Emergency Economic Powers Act (IEEPA) without Congressional action were unconstitutional. While federal officials say they have set aside $166 billion in unconstitutional tariffs, they have yet to establish a process for returning those funds to businesses and individuals who paid them.

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

West Michigan Businesses Hit Hard by Tariff Costs

The pain of increased costs from tariffs has not been offset by any of the promised economic gain, according to Whitmer's office. A recent survey from the Michigan Retailers Association found nearly 75 percent of Michigan retailers reported a negative or strongly negative impact from tariffs since April 2025. More than half of Michigan retailers, 56.1 percent, said uncertainty surrounding tariffs has affected their businesses, in addition to the tariffs themselves.

"The impacts really are across the board," said Vic Vega, Vice President of Communications for the Michigan Retailers Association. "Changing item pricing, changing inventory or changes to their suppliers. Other members have also shared making changes to the business processes or delaying pre-planned projects, things like maintenance or upgrades to the business, technology advancements."

Small businesses in particular are struggling to navigate a system that doesn't currently exist. Brian Calley, president and CEO of the Small Business Association of Michigan, said the governor's help would be welcomed by businesses that cannot afford legal counsel to work through whatever bureaucracy is created to comply with the refund decision.

"I think that's the most important thing that could be provided for small businesses, in particular, that will be navigating a system that literally doesn't exist right now," Calley said. "There's so many complex aspects to this."

Economic Impact on Michigan Households

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. West Michigan families, already managing rising living costs, have been particularly affected.

A recent report ordered last year by the governor determined agriculture, home builders and construction were among the Michigan industries hardest hit by tariffs. Michigan farmers selling soybeans, dairy and other products abroad faced reduced demand when countries like China imposed counter-tariffs on U.S. goods, lowering farm revenues and creating uncertainty in rural communities.

For working families, tariffs have cost each family on average $1,000 per year, according to Whitmer's office. They have led to higher prices for cars, appliances, construction materials and consumer products. U.S. consumers and businesses have borne most of the cost of these tariffs rather than foreign producers.

State Agencies to Help Navigate Refund Process

U.S. Customs and Border Protection, the agency which processes tariffs, says a new system to issue refunds is about 80 percent complete. The governor's directive instructs state departments to submit a report illustrating the way that the use of tariffs has impacted Michigan industries and consumers. It also directs state departments to ensure that businesses and employers know how to seek refunds under the process the federal government is developing.

Whitmer's office said 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.

"I would not buy things on credit based on the supposed promise of reimbursement checks coming," said Sandy Baruha, president and CEO of the Detroit Regional Chamber. "I think he's moving from one avenue to another and he's in the process of doing that right now."

Economist Charles Ballard agreed there are still a lot of questions about how the decision will be applied and who might benefit. "I think there probably will be some refunds," Ballard said. "To the extent to which those trickle back to consumers, I don't think we're sure about that, especially since there already so many other inflationary pressures right now, especially in the oil markets."

Governor Calls on Congress for Strategic Trade Policy

Despite the uncertainty and disruption driving up prices in the economy and the lack of any Congressional involvement, the administration has not backed down on its use of tariffs. In fact, the administration has imposed new tariffs following the Supreme Court's ruling, as well as maintaining those on steel, aluminum and other goods.

Whitmer said she will continue to call on Congress to set a strategic trade policy that keeps costs down and the economy stable. "Whether it's making it easier to get your refund or working to lower everyday costs, we've got your back," she said.

The Michigan Constitution of 1963 vests the executive power of the State of Michigan in the governor and places each principal department under the supervision of the governor. Acting under the Michigan Constitution and Michigan law, Whitmer issued the directive to help Michiganders understand and access refunds from unconstitutional tariffs.

What Businesses Need to Know

Michigan businesses affected by the tariffs should contact their local state offices for guidance on the refund process. The governor's directive establishes state agencies as a resource for businesses navigating this complex federal system.

West Michigan businesses in agriculture, manufacturing, retail and construction have been particularly affected by the tariffs. The state will compile data on which industries have been hit hardest to help target support and resources.

The Supreme Court decision leaves a lot of loose ends, according to Sandy Baruha. "I would not buy things on credit based on the supposed promise of reimbursement checks coming," Baruha said. "I think he's moving from one avenue to another and he's in the process of doing that right now."

Looking Forward

The governor's directive represents an important step in helping Michiganders get refunds from unconstitutional tariffs. However, the refund process remains uncertain as federal officials work to establish a system that is accessible to all businesses and individuals.

Whitmer emphasized that the state will continue to monitor the situation and advocate for Michiganders as the federal government works to refund unconstitutional tariffs. "This executive directive will show us the damage from these irresponsible tariffs and help get refunds back to Michigan businesses," she said.

As Michigan moves forward, the state remains committed to protecting its businesses and families from the economic impact of unconstitutional federal policies. The governor's office will continue to work with Congress to establish strategic trade policy that keeps costs down and the economy stable.