LANSING — The Whitmer administration released the results of several reports submitted by State of Michigan departments in response to Whitmer’s executive directive to study the impacts of the Trump tariffs on costs for Michiganders. Recently, the Trump administration argued before the United States Supreme Court in favor of the President’s tariffs. In those arguments, the Trump administration admitted that tariffs are a tax on Americans.
The reports showed that the Trump administration is driving up prices while also leading to sharp declines in exports from Michigan:
- Farmers and families, with MDARD noting sharp declines of agricultural exports (wheat –89%, cherries –62%, apples –58%, soybeans –46%) and higher prices of spices (+50%), food packaging (+12%), and food (+3.6%) at the store.
- Homebuilders and homebuyers, with MSHDA tracking a nationwide increase of up to $4 billion on materials necessary for home construction and an increase in already record home prices, raising the cost of homes by $10,000.
- Construction contractors and workers on road projects, with MDOT highlighting increased uncertainty of planned projects going forward, with an up to $218 million impact when factoring increased prices from tariffs and inflation.
“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. 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.”
Toplines from department reports include:
Michigan State Housing Development Authority (MSHDA)
- 7% of all inputs used in home construction (wood, drywall, appliances, etc.) are from foreign sources. Two of the primary inputs—soft lumber and gypsum for drywall—come overwhelmingly from Canada and Mexico. China supplies several other important items used in construction, including steel, aluminum, and many home appliances. Nationally, it is expected that the price of these inputs will increase by between $3 billion and $4 billion. Once prices increase, they rarely come back down to pre-tariff levels. Tariffs warp prices paid by developers and ultimately homebuyers and renters for a long time.
- A tariff-related slowdown of housing production will likely serve to dampen economic expansion due to a lack of units available for new employees.
Michigan Department of Agriculture and Rural Development (MDARD)
- Tariffs are raising costs and sowing uncertainty in Michigan’s food and agriculture sector, which contributes nearly $126 billion to the state’s economy each year. Food and agriculture businesses support more than 800,000 jobs in Michigan.
- In 2024, before the new tariffs, Michigan set a new state export record by exporting nearly $3 billion of food and agriculture products.
- Comparing the first half of 2025 to the same period last year, Michigan’s Soybean meal exports fell by 46 percent. Wheat exports declined 89 percent. Fresh cherry exports fell by 62 percent. Fresh apple exports declined 58 percent.
- Food prices are expected to rise 3.6% this year because of tariffs. Families in bottom 10% to 20% will see a 5% drop in disposable income, meaning tough choices at the grocery store, further exacerbated by SNAP cuts.
Michigan Department of Natural Resources (DNR)
- Ongoing upgrades to state parks are more unpredictable and costly as needed materials become more expensive because of tariffs. Specifically, costs spiking on goods DNR needs to upgrade & maintain parks including construction machinery parts (up 36%) and turf and grounds care equipment (up 4.4%).
Michigan Department of Technology, Management, and Budget (DTMB)
- Increases in procurement costs are already impacting ongoing state projects including the new state psychiatric hospital, new state laboratory, Barraga Correctional Housing unit, the Mackinac Island Visitors Center, the Bay Pines, camp Tuhsmeheta, South State Fish Hatchery, Geagley Laboratory.
Michigan Department of Environment, Great Lakes, and Energy (EGLE)
- Some vendors reported cost increases of up to 15% on materials for water infrastructure projects including drinking water, wastewater, and flooding prevention.
Michigan Department of Transportation (MDOT)
- Continued tariffs could raise the material costs to fix the damn roads up to $168 million, diminishing the state’s ability to fix critical roads and bridges on time and under budget.
- When combined with inflation, the total cost will increase to up to $218 million.
Michigan Department of Insurance and Financial Services (DIFS)
- Auto insurance providers could file for higher rates and ultimately increase premiums on Michiganders because of the higher cost of vehicle parts driven by tariffs.
Impact of Tariffs on Michigan Manufacturing
- Big Three auto companies like Stellantis and GM have reported significant losses, citing tariffs as a major culprit.
- A few weeks ago, GM laid off 3,400 auto workers at a major Michigan plant.
- Ford is taking out a new line of credit due to economic uncertainty and said tariffs will cost $2 billion.
- An auto parts firm announced tariff-driven conditions will force it to close its facility in Michigan and lay off over a hundred employees.
- A Zeeland clock company that has operated in Michigan for nearly a century is closing its doors due to tariffs.
The 2025 election results show that voters are feeling the pinch due to tariffs and other economic uncertainty that began this year. Democrats not only won an expected race in Virginia, but Abigail Spanberger won by a much larger margin than expected. In New Jersey, Mikie Sherrill won a landslide despite the fact that New Jersey was expected to elect a Republican governor.
