Whitmer: Trump Tariffs ‘Crushing Michigan’ as Prices Rise, Layoffs Increase

Governor Gretchen Whitmer has intensified her criticism of President Donald Trump's tariff policies, asserting that they are severely impacting Michigan's economy by escalating prices and triggering layoffs across key industries.

In a recent op-ed, Whitmer highlighted that the current tariff strategy is making everything more expensive, urging for a more strategic approach to alleviate the financial burden on Michigan families and businesses.

Data from the Yale Budget Lab reveals that the U.S. effective tariff rate has surged to 20.6%, the highest in 115 years. This unprecedented increase is placing immense pressure on Michigan's manufacturing sector, particularly the automotive industry, which employs approximately 1.2 million residents. The state's major automakers, including Ford, General Motors, and Stellantis, have reported significant financial losses attributed to these tariffs.

For instance, Ford anticipates a $2 billion impact due to the tariffs, while General Motors and Stellantis have each reported losses exceeding $1 billion. Additionally, a Michigan-based auto parts firm announced plans to close its facility, resulting in over a hundred layoffs, citing tariff-driven conditions as the primary cause.

The agricultural sector is also experiencing substantial setbacks. The Michigan Department of Agriculture and Rural Development reported that in the first half of 2025, soybean meal exports fell by 46%, wheat exports declined by 89%, fresh cherry exports dropped by 62%, and fresh apple exports decreased by 58%. These declines are largely due to retaliatory tariffs imposed by key trading partners.

Consumers are feeling the pinch as well. The Michigan Department of Agriculture and Rural Development estimates a 3.6% increase in food prices this year due to tariffs, with lower-income households facing up to a 5% reduction in disposable income. Housing costs are also on the rise, with tariff-related increases adding approximately $10,900 to the price of a new home.

Governor Whitmer has taken proactive steps to address these challenges. She signed an executive directive instructing state agencies to assess the impact of tariffs on Michigan's economy and has been vocal in advocating for a more strategic national tariff policy to mitigate the adverse effects on the state's industries and residents.

As the economic landscape continues to evolve, Whitmer remains committed to protecting Michigan's economy and ensuring that policies at the federal level do not disproportionately harm the state's workers and businesses.