News Summary

Michigan Governor Gretchen Whitmer has ordered an investigation into the economic effects of tariffs imposed by President Trump. The executive order, signed ahead of the August 1, 2025 deadline, aims to assess the tariffs’ impact on key sectors like manufacturing and agriculture, following reports of rising costs affecting Michigan families and businesses. The findings will inform state strategies to mitigate potential damage to the economy, particularly in the automotive industry.

Lansing, Michigan – Governor Gretchen Whitmer has initiated an investigation into the economic ramifications of tariffs imposed by President Donald Trump, just a day ahead of the crucial deadline set for August 1, 2025. The executive order, signed on July 31, mandates a comprehensive assessment of the tariffs, which are currently at the highest level seen in 115 years.

The governor’s decision stems from growing concerns regarding the adverse effects these tariffs have had on Michigan’s economy. In recent statements, Whitmer highlighted the challenges posed by Republican-led tariff policies. She indicated that these measures have weakened supply chains within the state, leading to increased costs for families and businesses alike.

The executive order directs state agencies to conduct an in-depth review of the tariffs’ impact on several critical sectors, including manufacturing, agriculture, and the overall economic landscape of Michigan. Specifically, Lt. Governor Garlin Gilchrist II has reiterated the need to address rising prices that are adversely affecting both families and the business community.

Within the next 30 days, state agencies are required to submit reports detailing the current and anticipated effects of these tariffs. The reports will be compiled from specific state departments, while other agencies will be encouraged to contribute additional relevant data, ensuring a comprehensive overview.

Whitmer’s office cited important concerns surrounding major automotive companies like Stellantis and General Motors, indicating that these companies have experienced notable financial challenges due to the tariffs. Additionally, Ford has resorted to utilizing a new line of credit amid the economic uncertainty. Experts suggest that businesses generally pass along about 60% of the tariff costs to consumers, leading to potential price hikes for everyday goods.

The situation has been exacerbated by the anticipated budget gap resulting from Trump’s One Big Beautiful Bill Act, which is expected to result in cuts to necessary programs such as food assistance and Medicaid in Michigan. This context underscores the urgency of Whitmer’s executive directive as a proactive step aimed at alleviating economic pressures on Michigan families and safeguarding the state’s economy.

Business leaders in the state have stressed that Michigan’s economy, highly dependent on imports, is particularly vulnerable to fluctuations brought about by Trump’s tariffs. The tariffs range widely, with rates reaching as high as 50% on steel and aluminum and varying percentages under the United States-Mexico-Canada Agreement (USMCA). This evolving trade landscape has prompted considerable apprehension, especially concerning the auto industry and local businesses operating with limited profit margins.

The Canadian Chamber of Commerce has noted that recent months have brought significant disruption in trade relations between Canada and the U.S., amid ongoing tariff negotiations that involve multiple international stakeholders, including the European Union, Japan, South Korea, and an extension with Mexico. However, discussions with Canada have not yet culminated in a favorable outcome as the deadline approaches.

Governor Whitmer’s executive order is designed to shed light on the broader implications of the current tariff strategy imposed by federal authorities. The findings from the state agencies will be instrumental in understanding how these tariffs affect Michigan’s pivotal industries and overall economic resilience in the face of federal trade policies.