The Office of the Governor of the State of Michigan
09/15/2025 | Press release | Distributed by Public on 09/15/2025 15:49
New MDARD Report Warns of Tariff Impacts on Food Prices, Agriculture Industry
FOR IMMEDIATE RELEASE
September 15, 2025
Contact: [email protected]
New MDARD Report Warns of Tariff Impacts on Food Prices, Agriculture Industry
LANSING, Mich. - Today, ahead of a speech from Governor Whitmer on tariffs and the state budget, the Michigan Department of Agriculture and Rural Development (MDARD) released a new report indicating that surging federal tariffs have increased food prices, reduced agriculture exports and generated uncertainty throughout Michigan's food and agriculture industry. This report comes as a response to Governor Whitmer's executive directive asking various state offices to investigate, calculate, and report the latest impact of tariffs on Michigan's economy.
"Federal tariffs are raising the cost of groceries, making it harder for Michiganders to feed their families and they are causing massive uncertainty for our farmers and agriculture industry, threatening hundreds of thousands of jobs statewide," said Governor Whitmer. "While we cannot change the national tariff rate, we must work together at the state level to support the farmers and producers who help put fresh, affordable food on our tables. In Michigan, that means passing a balanced, bipartisan budget that funds the infrastructure and programs farmers and food producers need to do their jobs and get food from the farm to the plate. Let's get it done."
"I continue to hear from farmers and producers across the state of Michigan who are deeply concerned about their ability to weather market uncertainty, including the impacts of retaliatory tariffs imposed in response to U.S. trade actions," said MDARD Director Tim Boring. "Tariffs are jeopardizing agricultural jobs, disrupting rural economies and reducing Michiganders' access to affordable food."
According to the report, 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, prior to the Trump administration's 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, and
- Fresh apple exports declined 58 percent.
The report shows that tariffs are not only raising the cost of food, they are also making it more difficult for Michigan farms and food businesses to sell in international markets. Canada, China and other countries responded to the Trump administration's tariffs with retaliatory tariffs of up to 140 percent on U.S. agriculture goods. These retaliatory tariffs are drying up export markets that Michigan farmers and producers depend on.
Additionally, tariffs are driving up the cost of packaging used for food products. Steel and aluminum tariffs could increase canned food manufacturers' costs by up to 12 percent - costs which are expected to be passed on to consumers.
Tariffs are taxes on goods imported into the United States. They are paid by the person or company that imports the goods. Companies often pass some or all tariff costs on to consumers in the form of higher prices.
During the first Trump administration, retaliatory tariffs cost Michigan farmers more than $277 million in export revenue. Increased tariffs in this administration are producing higher costs and greater uncertainty for Michigan food and agriculture businesses while putting agriculture jobs and families who depend on affordable food at risk.
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The Office of the Governor of the State of Michigan published this content on September 15, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on September 15, 2025 at 21:49 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]