Gov. Gretchen Whitmer has ordered state officials to help businesses and employers receive refunds for federal tariffs paid in the last year
The declaration came as part of an executive order, signed Thursday, which also requires reports from state agencies on tariff impacts
President Donald Trump used emergency powers to enact the tariffs in 2025. The US Supreme Court has since ruled the move illegal.
LANSING — Gov. Gretchen Whitmer on Thursday directed state departments to help Michigan businesses seek refunds on Trump administration tariffs struck down by the US Supreme Court in February.
Her executive action also directs a handful of state departments to report on how the “irresponsible tariffs” have impacted state businesses and consumers across the state.
“This executive directive will show us the damage from these irresponsible tariffs and help get refunds back to Michigan businesses,” Whitmer, a Democrat, said in a statement announcing the executive directive.
“I’ll continue to call on Congress to set a strategic trade policy that keeps costs down and our economy stable.”
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In its 6-3 decision, the Supreme Court ruled President Donald Trump illegally used his emergency powers to impose a broad package of global import duties, announced one year ago on what he called “Liberation Day.”
Trump quickly implemented a separate 10% global tariff and vowed to raise it to 15% in a continued bid to erase trade deficits and encourage domestic production.
It’s not clear how many Michigan businesses may seek refunds from the initial tariffs, but the impact could be large, especially in the auto industry.
In a recent federal disclosure, Ford Motor Co. reported a “$2 billion tariff impact” in 2025, though it’s unclear which costs were paid by the company or its suppliers. Similarly, General Motors reported that tariffs increased its costs by $3.1 billion last year.
The Supreme Court’s ruling did not directly address the potential or process for refunds, but in a dissent, Justice Brett Kavanaugh warned it could be “messy.”
“Refunds of billions of dollars would have significant consequences for the U. S. Treasury,” Kavanaugh wrote.
Since the ruling, US Customs and Border Protection has been working to set up a tariff refund process, which is being overseen by the US Court of International Trade.
In a Tuesday filing, a Trump administration official said development of the system is 60% to 85% complete. Once operational, it could take up to 45 days to review and process claims.
As part of Executive Directive 2026-02, Whitmer requires the state’s Agriculture and Rural Development, Labor and Economic Opportunity, Transportation and Treasury departments to submit a report in the next 30 days outlining how tariffs have affected Michigan businesses and residents.
The Department of Labor and Economic Opportunity, as well as the Department of Licensing and Regulatory Affairs, are also tasked with figuring out ways “to ensure that registered businesses and employers are aware of the process” for seeking tariff refunds.
“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,” Whitmer wrote in the order.
In a separate 2025 directive, Whitmer ordered state departments to assess tariffs’ impact on specific Michigan industries.
The state Housing Development Authority found nationwide increases in material prices raised the cost of homebuilding by $10,000. The Department of Agriculture and Rural Development, meanwhile, noted a dramatic drop in agricultural exports, such as wheat – which saw a year-over-year export decline of 89% – and cherries, which saw year-over-year exports drop by 62%.
In Thursday’s order, the Whitmer administration estimated tariffs have cost the average working family around $1,000 per year due to price increases passed down from companies to consumers.
In a recent interview with Bridge Michigan, former federal trade official Christopher Padilla said small businesses have likely borne the brunt of tariff costs “because larger companies have been able to mitigate some of the effects of tariffs by shifting their supply chains, by passing off some of the cost of the tariffs to others in the supply chain or to their end customers.”
Businesses will continue to face uncertainty, he predicted.
“I wish I could say that it’s going to get better, but I don’t think it will,” said Padilla, who served in President George W. Bush’s administration. “I think we’re in for three more years of this, because there aren’t a lot of signs that the administration’s policy is going to get a lot more predictable.”
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