Lansing, Michigan – Michigan’s state agencies have put out a number of reports that show how the federal tariffs are affecting the economy in many ways. They say that the tariffs are making things more expensive for people, hurting local businesses, and putting thousands of jobs at risk. The results were sent in because Governor Gretchen Whitmer asked for them to look into the effects of the tariffs. They come at the same time that the U.S. Supreme Court is hearing arguments over whether the federal government’s tariff policies are valid.
Reports say that the tariffs are hurting Michigan’s economy in many ways, including agriculture, housing, manufacturing, and infrastructure. The Michigan Department of Agriculture and Rural Development (MDARD) says that farmers are among the hardest hit. Compared to last year, agricultural exports have declined a lot. Wheat shipments are down 89%, cherries 62%, apples 58%, and soybeans 46%. The price of spices has gone up by 50%, the price of food packaging has gone up by 12%, and the price of groceries in general has gone up by over 4%. For a lot of families with low incomes, these price hikes mean they have less money to spend and have to make harder choices at the grocery store.
The Michigan State Housing Development Authority (MSHDA) said the same thing about the housing market: tariffs have raised the cost of building homes by up to $4 billion across the country. For an average new home, these hikes mean about $10,000 extra. Housing is already hard to come by, and increasing costs are likely to make it much harder to afford and slow down new construction.
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The Michigan Department of Transportation (MDOT) said that it is getting difficult to pay for and plan infrastructure projects since the cost of materials for roads and bridges could go up by up to $218 million when inflation is taken into account. The Department of Natural Resources (DNR) and the Department of Environment, Great Lakes, and Energy (EGLE) both said that park upgrades and water infrastructure improvements are getting more expensive because of higher import costs and delays in the supply chain.
The manufacturing industry, which is one of Michigan’s most important economic sectors, is under even more stress. Auto companies including GM, Ford, and Stellantis have said that tariffs are a big reason why they have lost money, laid off workers, and slowed down production. GM just said it would lose 3,400 jobs at a Michigan plant. Smaller companies are also shutting down because of increased prices.
Governor Whitmer remarked that the reports corroborate what many people in the state have already felt: costs are going up and things are uncertain.
“Michigan families and businesses are all facing rising prices and constant uncertainty because of our chaotic national tariff strategy,” said Governor Whitmer. “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.
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Whitmer can’t change federal tariff rates, but her administration has been striving to make things easier for people financially through state programs like tax breaks for retirees, extra credits for working families, and programs to make education and childcare more accessible. The Governor emphasized that those initiatives will continue to be important as Michigan deals with the effects of federal trade policies.