(The Center Square) – New reports from several State of Michigan departments dig into the impact of federal tariffs, including “higher prices and costly delays” in shipments.
Michigan Gov. Gretchen Whitmer has long focused on the negative effects of tariffs on Michigan businesses, especially the automotive industry.
These reports are the products of an executive directive she signed at the end of July directing six different state agencies to submit reports on the effects of tariffs on their respective industries.
Whitmer addressed the reports’ findings, which were as she anticipated in her directive.
“Michigan families and businesses are all facing rising prices and constant uncertainty because of our chaotic national tariff strategy,” said 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.”
Every sector is being impacted by tariffs in some way, the reports state. Here are some of the their key findings:
• The Michigan State Housing Development Authority found that, nationwide, the “tariff-related increases” increased the cost for a new home project by an estimated $10,900. The agency warned that higher construction expenses could tighten the housing market and reduce affordability.
• The Michigan Department of Agriculture and Rural Development reported steep drops in farm exports in the first half of 2025, including an 89% decline in wheat and a 62% decline in cherries, as retaliatory tariffs cut off key markets. Food processors and packagers faced higher input costs, pushing food prices up and reducing disposable income for low-income families.
• The Michigan Department of Natural Resources saw rising prices for park equipment, vehicle maintenance and outdoor recreation gear, making upgrades more costly.
• The Michigan Department of Technology, Management, and Budget noted that procurement costs increased on major state construction projects.
• The Michigan Department of Environment, Great Lakes, and Energy reported up to 15% cost increases for water infrastructure materials.
• The Michigan Department of Transportation estimated that tariffs added up to $168 million to road-repair material costs. When combined with inflation, the total cost could increase to upwards of $218 million.
Those were the six departments that Whitmer directed to submit reports. Some other departments, like the Michigan Department of Insurance and Financial Services voluntarily submitted a report detailing concerns about potential higher rates and increased premiums due to the cost increases in car parts.
Since President Donald Trump began his second term, Whitmer has met with him multiple times to discuss tariff policy. She said in response to the reports that the state will do what it can to mitigate these predicted increases.
“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,” she said. “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.”
While Democrats are pushing back against tariffs, Trump’s office, and Republicans, argue tariffs will ultimately boost manufacturing in the United States.
The Congressional Budget Office has estimated that the tariffs could generate $4 trillion in revenue over the next decade.
