Dear Friend,

Yesterday, I signed an executive directive to assess the impact tariffs are having on costs. The directive asks various state agencies and departments to investigate, calculate, and report the impact of tariffs on Michigan’s economy within each of their respective areas.

Over the past 7 months, tariffs have reached their highest levels in 115 years, raising costs for Michigan families, weakening our supply chains, and negatively impacting leading Michigan sectors like manufacturing, the auto industry, and agriculture.

I have heard from countless Michiganders who are alarmed by the way Washington Republicans are handling tariffs. Our national strategy is weakening our supply chains, increasing costs on the essentials, and causing major companies to scale back operations or planned investments in Michigan.

A few weeks ago, I asked Michiganders to share what we can focus on to help lower costs for you and your family. I asked if Michiganders had noticed an increase in prices over the past six months, and nearly 5,000 Michiganders wrote back saying they’ve seen their grocery bills go up. Over 7,000 Michiganders told me they’re seeing an increase in their utilities and/or gas at the pump. Nearly 3,000 are concerned about increasing health care costs.

We know that companies pass on tariff costs to you, the consumer. According to Michiganders, we’re already seeing that happen here in Michigan. President Trump’s tariffs are causing widespread economic uncertainty. They are forcing Michigan families to pay more out of pocket to put food on the table, heat their homes, fill their gas tanks, and find affordable housing. They are raising production costs for Michigan businesses and making it harder for them to plan ahead. 

While, as governor, I can’t control tariffs, I can make sure you know how they will affect your life and do everything in my power to help. That’s why I signed an executive directive to report the updated impact of these tariffs on Michigan’s economy, so we can protect our economy and lower costs for Michigan families.

Sincerely,

Listening to Michiganders – Survey Results 

Michiganders are already struggling with high costs, the last thing they need is for prices at the store, at the pump, and online to increase even more. That’s why I wanted to hear from you about how we can best help lower costs for you and your family.

I asked Michiganders: Have you noticed an increase in prices for any of the following items over the past six months?

Thousands of Michiganders responded that they are seeing prices go up, with a majority concerned about the cost of groceries and food going up over the last six months. Here’s how many Michiganders contacted me with their concerns about prices going up for each of these everyday expenses:

Number of Michiganders who contacted me about rising prices over the last 6 months in these categories

Impacts of Tariffs on Michigan Families During Back-to-School Season

As tariff-driven inflation skyrockets, major back-to-school retailers such as Walmart, Target, Best Buy, Amazon, and Costco have announced they will continue to increase their prices, taking more money out of the wallets of hardworking, middle-class Americans. 

I also asked Michiganders: If you are going to be back to school shopping this year, do you expect to spend less or more than last year?

1,500 Parents, over 50% of those who wrote in, said they expect to pay more when going back to school shopping this year.

Michigan families are already facing high costs, and these tariffs are making it even harder for them to afford essential school supplies. Prices for shoes, water bottles, clothes, pencils, juice boxes, laptops, and other necessities are rising, making back-to-school shopping more expensive than ever and making it harder for parents and educators to supply kids with the tools they need to succeed.

I will continue to work with anyone to lower costs, put more money in working families’ pockets, and protect Michigan's families from these harmful tariffs.

Keeping Costs Low for Michiganders

While President Trump has been imposing new tariffs and raising costs for working families, I am focused on lowering costs for Michiganders on the things that matter most to them—education, childcare, housing, and more.

 Since taking office, my administration has:

• Rolled back the retirement tax to save 500,000 households an average of $1,000 a year.
• Quintupled the Michigan Working Families Tax Credit to give over 700,000 working families an average tax refund of $3,150.
• Expanded access to free pre-K to every four-year-old while prioritizing families who need it most so every kid can arrive at kindergarten ready to learn.
• Signed bipartisan legislation to put money back in people’s pockets and bring down the cost of car insurance, saving drivers at least $120 per car in 2020.
• Delivered refunds of $400 per vehicle back in the pockets of Michigan drivers.
• Eliminated the tampon tax.
• Announced the MI Open Account Coalition, offering low or no-cost financial services, saving eligible families an average of $3,000 a year and helping them build wealth.
• Expanded Michigan’s unemployment benefits for the first time since 2011, putting more money into people’s pockets.
• Signed a deal raising the minimum wage for more than 700,000 workers, making Michigan’s earned sick time the best in the country, and providing flexibility for small businesses.
• Proposed a budget continuing retiree and working families tax cuts, pre-K for every four-year-old, expanding the MiABLE program, capping test fees for low-income students, and creating water affordability programs for families struggling with bills.

Impact of Tariffs on Michigan’s Economy

Companies and consumers will bear the brunt of the tariffs as costs continue to skyrocket. Largely, companies have been working through inventory purchased before tariffs were enacted. However, with this inventory running out, certain U.S. employers could face a direct cost of $82.3 billion because of the federal tariff plans. This could cause large and small companies to lay off workers, raise prices, or even close operations.

Consumers will be the hardest hit as companies are projected to pass on 60% of their tariff costs to consumers. This means that American consumers could lose out on anywhere between $2,100 and $4,900 each year. That is thousands of dollars that American families will no longer have to spend on groceries, electricity bills, car payments, and more.