LANSING, Mich. (WLNS) — A minimum of eight Michigan departments have submitted a report back to the Workplace of the Governor on the attainable affect of tariffs on the state’s economic system. Stories point out that increased costs, costlier housing, and an unstable job market might be on the horizon.
In July, Gov. Gretchen Whitmer issued an government order, asking the departments to gauge the affect of tariffs on Michigan and its residents.
The Michigan State Housing Improvement Authority (MSHDA), Michigan Division of Agriculture and Rural Improvement (MDARD), Michigan Division of Pure Sources (DNR), Michigan Division of Expertise, Administration, and Price range (DTMB), Michigan Division of Setting, Nice Lakes, and Vitality (EGLE), Michigan Division of Transportation (MDOT), Michigan Division of Insurance coverage and Monetary Companies (DIFS), and the Gaming Fee contributed to the experiences.
In accordance with the Workplace of the Governor, tariff impacts will most instantly have an effect on farmers on account of a pointy decline in exports, homebuilders and patrons on account of a rise in house constructing materials costs, and development contractors and staff on highway tasks on account of uncertainty surrounding venture budgets.
“Our departments have obtained info from Michiganders throughout the state exhibiting that tariffs are elevating prices, inflicting provide chain points, and creating much more uncertainty for individuals and future job-creating tasks,” stated Whitmer in a information launch despatched to six Information.
Tariff experiences abstract
Michigan State Housing Improvement Authority
7% of all supplies utilized in house development, together with wooden, drywall, metal, aluminum, and home equipment, are sourced from international nations. Nationally, costs are anticipated to extend by between $3 billion and $4 billion, in line with the report
The Nationwide Affiliation of House Builders experiences that tariff-related will increase within the value of a brand new house complete roughly $10,900.
Much less cash obtainable to afford shelter and different family requirements on account of value will increase related to tariffs, main to extra evictions, homelessness, and instability, in line with the report.
A slowdown in housing manufacturing will seemingly dampen financial enlargement on account of a scarcity of obtainable models for brand spanking new workers.
Michigan Division of Agriculture and Rural Improvement
In accordance with the report, tariffs are creating uncertainty in Michigan’s meals and agriculture sector by elevating prices. The meals and agriculture business contributes practically $126 billion to the state’s economic system annually and helps greater than 800,000 jobs.
Michigan soybean meal exports fell by 46%, wheat exports declined by 89%, recent cherry exports fell by 62%, and recent apple exports declined by 58% within the first half of 2025 when in comparison with the identical time interval a 12 months prior.
Meals processors who use imported spices are seeing the prices rise.
Meals packaging costs have elevated by as a lot as 12%, elevating the prices of canned items for shoppers.
Michigan Division of Pure Sources
In accordance with the report, updates to state parks have grow to be extra expensive on account of a rise in materials prices. Particularly, development equipment components prices have elevated 36% and turf and grounds care gear prices are up 4.4%.
The upkeep price to help greater than 1,500 automobiles within the DNR fleet has elevated.
Michigan Division of Expertise, Administration, and Price range
Ongoing state tasks impacted by tariffs embrace the brand new state psychiatric hospital, the brand new state laboratory, the Barraga Correctional Housing unit, the Mackinac Island Guests Middle, the Bay Pines, the Camp Tuhsmeheta, the South State Fish Hatchery, and the Geagley Laboratory.
Michigan Division of Setting, Nice Lakes, and Vitality
Distributors have reported price will increase of as much as 15% on supplies for water infrastructure tasks, together with consuming water, wastewater, and flooding prevention.
Michigan Division of Insurance coverage and Monetary Companies
In accordance with the report, auto insurance coverage suppliers may file for increased charges and improve premiums as a result of increased price of car components.
Gaming Fee
In accordance with the report, tariffs may affect gaming by growing prices, decreasing income, and limiting product availability, which may result in layoffs, decreased tax income, and a rise in unlawful playing.
Manufacturing
Automotive corporations similar to Stellantis and GM have reported losses, citing tariffs as a serious motive. GM laid off round 1,700 staff at vegetation in Michigan and Ohio, in line with the Related Press.
In accordance with the Detroit Free Press, Ford took out a brand new line of credit score on account of financial uncertainty and says tariffs will price them round $2 billion.
In accordance with the Detroit Free Press, an auto components agency can be compelled to shut and lay off greater than 100 workers on account of tariff-driven situations.
A Zeeland clock firm that has operated in Michigan for practically a century is closing its doorways on account of tariffs.
