Gov: Tariffs Choking Out MI Farmers; Reason To Pass Balanced Budget Now

(Source: MIRS.news, Published 09/15/2025) Soybean meal exports have fallen by 46 percent since this time in 2024, wheat exports are down 89 percent, fresh cherry exports are down 62 percent, and fresh apple exports 58 percent in response to the higher federal tariffs, according to a Department of Agriculture and Rural Development (MDARD) report released Monday ahead of Gov. Gretchen Whitmer's speech on tariffs and the state budget.

The report shows that Canada, China and other countries responded to the Trump administration’s tariffs with retaliatory tariffs of up to 140 percent on U.S. agricultural goods, which are drying up export markets.

During the first Trump administration, retaliatory tariffs cost Michigan farmers more than $277 million in export revenue, according to the Whitmer administration. 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, the Whitmer administration said.

"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," Whitmer said. "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."

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, she said.

The new report came in 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. 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.