Findings of State of Michigan Department Reports on National Tariffs: Higher Grocery Prices, More Expensive Housing, Jobs at Risk

FOR IMMEDIATE RELEASE

November 5, 2025

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Findings of State of Michigan Department Reports on National Tariffs: Higher Grocery Prices, More Expensive Housing, Jobs at Risk

As Supreme Court weighs case on tariffs, Michigan taking action to measure impact of tariffs, continues lowering costs

LANSING, Mich. - In response to Governor Gretchen Whitmer's executive directive to gauge the impact of federal tariffs on Michigan's economy, several State of Michigan departments submitted reports pointing to higher prices and costly delays that would ultimately impact Michiganders. Today, the U.S. Supreme Court will hear arguments on the legality of the federal government's chaotic national tariffs.

According to the reports, the impact of tariffs would be felt most by:

• Farmers and families, with MDARD noting 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 MSHDA tracking a nationwide increase of up to $4 billion on materials necessary for home construction and an increase in already record home prices, raising the cost of homes by $10,000.

• Construction contractors and workers on road projects, with MDOT highlighting increased uncertainty of planned projects going forward, with an up to $218 million impact when factoring increased prices from tariffs and inflation.

"Michigan families and businesses are all facing rising prices and constant uncertainty because of our chaotic national tariff strategy," said Governor Whitmer. "Our departments have received information from Michiganders across the state showing that tariffs are raising costs, causing supply chain issues, and creating a lot more uncertainty for people and future job-creating projects. While I cannot change the national tariff rate, I will continue advocating for Michigan every chance I get so we can keep lowering costs for families. Let's fight to grow our economy by pursuing commonsense trade policies to bring jobs home without making crops, construction, or crucial infrastructure projects more expensive."

Summary of Tariff Reports

Michigan State Housing Development Authority (MSHDA)

• 7% of all inputs used in home construction (wood, drywall, appliances, etc.) are from foreign sources. Two of the primary inputs-soft lumber and gypsum for drywall-come overwhelmingly from Canada and Mexico. China supplies several other important items used in construction, including steel, aluminum, and many home appliances. Nationally, it is expected that the price of these inputs will increase by between $3 billion and $4 billion. Once prices increase, they rarely come back down to pre-tariff levels. Tariffs warp prices paid by developers and ultimately homebuyers and renters for a long time.

• The National Association of Home Builders reported that tariff-related increases in the price of a new home total about $10,900. Increased construction costs will push prices for new homes higher than they are now and make the market for existing housing even tighter.

• Tariffs imposed in 2018 (which were smaller than the ones currently in effect) caused material costs to increase between 10% and 15%, adding about $1 billion to construction expenses in just one year nationwide. Between 2018 and 2019, projects in MSHDA's Direct Lending pipeline saw their total development costs increase by 75%. Over the same period, acquisition/rehab project development costs increased by about 23%.

• As consumer prices overall increase due to tariffs, there will be less money available to afford both shelter and other household necessities, especially among lower-income households and households with children, ultimately leading to more eviction, homelessness, and instability.

• A tariff-related slowdown of housing production will likely serve to dampen economic expansion due to a lack of units available for new employees.

Michigan Department of Agriculture and Rural Development (MDARD)

• 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.

• In 2024, before the new tariffs, Michigan set a new state export record by exporting nearly $3 billion of food and agriculture products.

• 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.

• Retaliatory tariffs are drying up export markets that Michigan farmers and producers depend on.

• Food processors who use imported spices are seeing costs of their inputs go up considerably, raising prices of a typical Thanksgiving meal (cinnamon in apple pie, sage and thyme in stuffing).

• Food packaging also seeing much higher costs, as much as 12%, raising costs of canned goods for consumers.

• Food prices are expected to rise 3.6% this year because of tariffs. Families in 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)

• 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%).

• Price of motor vehicle maintenance has been increased at highest rate in more than a decade, raising the cost to maintain their state fleet of 1,500+ vehicles.

• Cost of outdoor recreation gear is going up because of tariffs too, putting pressure on small and mid-sized businesses and making outdoor recreation less affordable and accessible for Michiganders.

Michigan Department of Technology, Management, and Budget (DTMB)

• Increases in procurement costs are already impacting ongoing state projects including the:

• New state psychiatric hospital

• New state laboratory

• Barraga Correctional Housing unit

• The Mackinac Island Visitors Center

• The Bay Pines

• Camp Tuhsmeheta

• South State Fish Hatchery

• Geagley Laboratory

• DTMB is dedicating additional staff time and resources to find ways to mitigate the state's exposure to tariffs.

Michigan Department of Environment, Great Lakes, and Energy (EGLE)

• Some vendors reported cost increases of up to 15% on materials for water infrastructure projects including drinking water, wastewater, and flooding prevention.

• Many talked about increasing the projected cost of future projects because they are having to price in uncertainty driven by tariffs.

Michigan Department of Transportation (MDOT)

• Continued tariffs could raise the material costs to fix the damn roads up to $168 million, 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 $218 million.

• Lots of parts/components used in infrastructure have been hit by tariffs on them, making them more expensive to buy and slower to receive.

Michigan Department of Insurance and Financial Services (DIFS)

• Auto insurance providers could file for higher rates and ultimately increase premiums on Michiganders because of the higher cost of vehicle parts driven by tariffs.

Gaming Commission

• Tariffs could impact gaming with higher costs for critical inputs, lover revenue, limited product availability. Could lead to layoffs, less tax revenue for schools, increase in illegal gambling.

Impact of Tariffs on Michigan Manufacturing

• Big Three auto companies like Stellantis and GM have reported significant losses, citing tariffs as a major culprit.

• A few weeks ago, GM laid off 3,400 auto workers at a major Michigan plant.

• Ford is taking out a new line of credit due to economic uncertainty and said tariffs will cost $2 billion.

• An auto parts firm announced tariff-driven conditions will force it to close its facility in Michigan and lay off over a hundred employees.

• A Zeeland clock company that has operated in Michigan for nearly a century is closing its doors due to tariffs.

Lowering Costs for Michiganders

Governor Whitmer has been focused on lowering costs for Michiganders. Since taking office, the Whitmer-Gilchrist 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 650,000 working families an average tax refund of more than $3,800.

• Ended state taxes on tips, overtime, and Social Security.

• Signed a deal raising the minimum wage to $15/hour one year ahead of schedule for more than 700,000 workers and making Michigan's earned sick time the best in the country, while providing more flexibility for small businesses.

• Established Michigan Reconnect to offer any Michigander 25 and older tuition-free associate's degree or skills certificate.

• Established the Michigan Achievement Scholarship to save students thousands of dollars a year as they pursue a skills certificate, associate's degree, or bachelor's degree.

• 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.

• Announced the MI Open Account Coalition offering low or no-cost financial services, saving 120,000 eligible families an average of $3,000 a year and helping them build wealth.

• Eliminated the tampon tax.

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