In response to an executive directive issued by Governor Whitmer in July, several State of Michigan departments submitted reports on the impact of federal tariffs on Michigan’s economy.
According to the reports, the impact of tariffs would be felt most by:
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- Farmers and families, with notable 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 a potential nationwide increase of up to $4 billion on materials necessary for home construction andan increase in already record home prices, raising the cost of homes by $10,000.
- Construction contractors and workers on road projects, including increased uncertainty of planned projects going forward, and an up to $218 million impact when factoring in increased prices from tariffs and inflation.
Michigan Department of Agriculture and Rural Development (MDARD)
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- 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.
- 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 the 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)
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- 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)
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- Increases in procurement costs are already impacting ongoing state projects, including the new state psychiatric hospital, state laboratory, and the Barraga Correctional housing unit.
Michigan Department of Environment, Great Lakes, and Energy (EGLE)
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- 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)
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- Continued tariffs could raise the material costs to fix the roads up to $168million, 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 $218million.
