Gov. Gretchen Whitmer said she had heard from more than 3,000 Michiganders that they were worried about tariffs’ effect on their businesses. However, a closer look shows that the state’s business climate was tenuous before President Donald Trump proposed tariffs.

Trump imposed several tariffs, including 25% additional tariffs on imports from Canada and Mexico and an additional 10% tariff on Chinese imports, but has since paused tariffs on Canada and Mexico.

In her Wednesday news release, the governor said Michiganders are “concerned about how tariffs could hurt small business growth, threaten good-paying auto and manufacturing jobs up and down the supply chain, and jack up costs for families on groceries and gas.”

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Noting that she has no control over tariffs, Whitmer that she’s “doing everything I can to protect Michigan consumers and lower prices of everyday goods,” including pharmaceutical supplies.

The American Hospital Association asked Trump to “consider granting exceptions to the current and proposed tariffs for medical devices and pharmaceuticals made in Mexico, Canada and China that are essential to the provision of safe, effective care in America’s hospitals, clinics, and other settings.”

At this point, tariffs might be a bugbear more than anything. While Whitmer might want to fearmonger about tariffs that largely haven’t been implemented, she might look closer to home to find out why some Michiganders might be worried about rising costs.

According to Whitmer’s numbers, 54.6% said they would like food and groceries to be more affordable.

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Based on U.S. Bureau of Labor Statistics numbers via the Federal Reserve Bank of St. Louis, the Consumer Price Index for All Urban Consumers increased by roughly 21.5% between January 2021 and January 2025 during former President Joe Biden’s tenure. The CPIAUC is “a basket of goods and services paid by urban consumers,” including food, clothing and fuel.

The governor claimed she “proposed a balanced state budget for next year that aims to lower costs for Michiganders on the things that matter most to them.”

While it may sound good on paper, business groups sounded the alarm that the governor proposed increasing the state’s Corporate Income Tax from 6% to an estimated 8%. The idea was to raise roughly $3 billion for the state’s roads.

House Speaker Matt Hall, R-Richland Township, previously announced a $3.1 billion road funding plan. To raise the month, his plan would, in part, move existing revenue from an economic development fund, stop legislative earmarks, and eliminate business tax credits.

In a statement, Detroit Regional Chamber President and Chief Executive Officer Sandy K. Baruah said a corporate income tax increase “will do nothing but jeopardize the state’s ability” to “ensure Michigan is a desirable place to do business.”

Baruah continued: “The up to 33% increase in this tax won’t just impact large corporations, but companies of all sizes,” Baruah said. “In fact, nearly 85% of corporate income tax payers are businesses under 100 employees, and 62 % of them are under 10 employees. While Michigan needs good roads to move people and products and support a thriving economy, it cannot be at the expense of small businesses and the state’s business-friendly climate.”

According to the Michigan League for Public Policy, the state has had a 6% Corporate Income Tax since 2012. The Grand Rapids Chamber said the Wolverine State’s CIT is higher than half of the country, and 16 states have cut their rates since 2018.

Other indicators revealed that businesses didn’t necessarily hold the state in the highest regard.

Even before the 47th president announced the tariffs, a Simplify LLC report found that the Wolverine State ranked 41st best for entrepreneurs this year, down six spots from last year’s rankings.

Additionally, an analysis from the personal finance site WalletHub found Michigan ranked among the states with the worst changes in their unemployment rates. At No. 48, the Wolverine State was ahead of only Kentucky, Nevada and South Carolina.

Whitmer is expected to announce more budget plans as part of her State of the State Address on Feb. 26.