Tariff Uncertainty Returns to Mid-Michigan Economy After Supreme Court Ruling

Feb 23, 2026, 2:25 AM

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The Mid-Michigan economy is bracing for renewed uncertainty following a recent US Supreme Court ruling that struck down many of President Donald Trump's global tariffs. This decision has prompted the president to announce a new 10% global tariff, leaving small businesses in a difficult position as they navigate these rapid policy changes.

Local business owners, such as Chris Luoma of Jerry's Automotive in Lansing, are expressing concerns over the unpredictable nature of tariffs and their impact on pricing. Luoma emphasized the importance of fair pricing for customers while also managing the costs of parts, many of which have already seen price increases due to previous tariffs. "You want to still offer good quality to your clients, but you've got to be fair and competitive at the same time," Luoma stated, highlighting the challenge of sourcing parts that remain economically viable.

The Supreme Court's ruling has been met with mixed feelings among industry experts. Jason Miller, a supply chain expert from Michigan State University, noted that while the ruling could benefit consumers by potentially lowering prices, it may also negatively impact some manufacturers who previously thrived under the tariff regime. Miller explained that the legal landscape remains complicated, as many other avenues for imposing tariffs still exist under presidential powers.

As the state continues to assess the ramifications of these tariff changes, reports indicate that families and farmers will bear the brunt of the economic fallout. The Michigan Department of Agriculture and Rural Development (MDARD) highlighted sharp declines in agricultural exports and increases in grocery prices, with staples seeing substantial price hikes. For instance, the price of food packaging is projected to increase by 12%, while the prices of certain foods could rise by 3.6%.

The housing market is not immune either, as the Michigan State Housing Development Authority (MSHDA) reported that the cost of materials essential for home construction could rise by up to $4 billion nationally. This increase could add about $10,900 to the price of a new home, exacerbating an already tight housing market. With 7% of inputs in home construction sourced from abroad, any tariff-related increase in material costs can have wide-ranging impacts on the housing sector.

Governor Gretchen Whitmer has been vocal about the negative consequences of these tariffs, asserting that they create continuous uncertainty for families and businesses alike. In her remarks, she emphasized the need for more stable and sensible trade policies that would not inflate costs for consumers or jeopardize job creation in the state. "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," she stated.

The Supreme Court's deliberations over the legality of these tariffs, which have been described as an overreach of presidential authority, are crucial for determining the future of US trade policy. The justices focused on whether the International Emergency Economic Powers Act (IEEPA) grants the president sufficient authority to impose such sweeping tariffs. The outcome could either reinforce or dismantle the existing tariff framework, significantly impacting businesses paying the tariffs and potentially leading to refund processes for those affected if the tariffs are deemed illegal.

With the deadline for the Supreme Court's decision looming, businesses and consumers alike are left in a state of limbo, hoping for clarity and stability that has been elusive in recent years. As local entrepreneurs like Luoma continue to adapt to changing economic conditions, the broader implications of tariff policies remain a pressing concern for the Mid-Michigan economy as a whole.

The ongoing uncertainty underscores the critical need for businesses to remain agile and informed as they navigate the complexities of tariffs and their implications for pricing, supply chains, and overall economic health in the region.

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