Whitmer signs order to assess tariff impact on Michigan’s economy before deadline

LANSING, Mich. — Governor Gretchen Whitmer signed an executive order to look at the impact of tariffs on Michigan’s economy.

Whitmer is ordering state agencies to take a closer look at manufacturing, agriculture and the economy as a whole, according to a news release from the governor’s office.

The governor signed the order just hours before an Aug. 1 deadline by the Trump administration for countries to negotiate tariff rates to avoid taxes up to 50%.

In the news release, Whitmer mentions the tariffs have already raised prices and weakened the supply chain.

In an interview with CNN Thursday, Michigan Lt. Gov. Garlin Gilchrist expressed concerns about Michigan’s auto industry.

“These deals are not working for Michigan families,” Gilchrist said. “It’s the big three, they’re obviously losing money, the United Auto Workers Union and their members have come out strongly against the deal with Japan and others, but what we’re seeing is the auto suppliers, the supply chain that so many tens of thousands of people in Michigan work for, they’re getting hurt too.”

Economists have warned these tariffs could have wide-ranging impacts causing higher prices for consumers. However, President Donald Trump argues the tariffs will force companies to do more business in the U.S. and create more jobs.

“Right now, there’s no inflation, everybody thought there would be,” Trump said. “All we have is billions of dollars of cash pouring into our country from other countries that took advantage of us for many, many years.”

However, Clarence Lloyd, the vice president of Southwest Michigan First, is concerned about the potential impact.

“What we hear is that uncertainty really is the toughest part,” Lloyd said.

Southwest Michigan First is a chamber that works with business across the region to help them succeed.

Lloyd told News Channel 3 he’s concerned some businesses will have to close if they’re hit with higher costs from tariffs.

“Many of our regional business partners and employers here, locally, even they operate on these razor thin margins,” Lloyd said.

Thursday, the Trump administration struck some deals, including a 90-day extension for negotiations with Mexico.

The new tariffs could begin on many trading partners at midnight.