New tariffs are taking a toll on Michigan’s retailers, with most reporting negative effects on supply chains, pricing, and business operations.

Tariffs Impact Michigan Retailers as Supply Chains Waver

Retailers across Michigan are facing mounting challenges as new federal tariffs take hold. A May 2025 survey from the Michigan Retailers Association (MRA) shows more than 69% of businesses expect negative impacts in the coming 3 to 6 months. The concern centers on President Trump’s April 2 “Liberation Day” tariff rollout, which has already caused widespread inventory delays and price hikes.

Retail represents 27% of Michigan jobs, according to the National Retail Federation, making tariff-related disruption a serious issue for local economies.

Tariffs Impact Michigan Retailers’ Ordering and Inventory Decisions

According to MRA’s data, over 60% of Michigan retailers import goods—mostly from China, Canada, and Mexico. Over half have delayed or changed overseas orders due to tariff uncertainty, while 15.9% have outright canceled orders. To navigate instability, some retailers are pre-ordering seasonal stock to beat tariffs, while others are scaling back and focusing on bestsellers. (retailers.com)

More than 50% of Michigan businesses surveyed are actively considering inventory adjustments, and 26.5% have already done so. Changes to suppliers are also accelerating, with 36.7% evaluating alternatives and 14.3% having already made the switch.

Pricing Pressures Grow as Tariffs Drive Up Costs

One of the most direct effects seen as tariffs impact Michigan retailers is price inflation. Two-thirds of those surveyed have raised prices, with 16.7% calling the increases “significant.” Roughly a third of businesses have so far held prices steady, but the trend is not expected to last.

“The inconsistency in which these tariffs are threatened and applied has created a very difficult environment for business owners,” said MRA CEO Bill Hallan. “They’re busy running their stores and serving their communities, and they don’t have the same resources as larger stores.”

Local Retailers Lean Into Michigan-Made Products

Some small retailers have found a silver lining. Niche markets that source goods locally—such as thrift stores, antique shops, and businesses selling handmade items—have largely avoided the tariff disruption. These retailers are now using their independence from global supply chains as a selling point to boost local foot traffic.

Uncertainty and Long-Term Outlook Remain Problematic

The most destabilizing force may be the unpredictability of the tariffs. Retailers say the constant policy shifts make future planning difficult. A strong 69.4% of MRA members expect the negative effects of tariffs to last well beyond the next six months.

Most MRA members are small-scale operators: 75% have fewer than 25 employees and only one storefront. According to the U.S. Chamber of Commerce, nearly 74% of wholesale and retail trade businesses nationally operate without any employees. (uschamber.com)

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