Fed tariffs push grocery bills higher and threaten Michigan’s agriculture revenue through export losses.

LANSING, Mich. — A new report from the Michigan Department of Agriculture and Rural Development (MDARD) warns that federal tariffs are raising food prices, reducing exports, and sowing economic uncertainty for farmers, producers and consumers across the state.

Governor Gretchen Whitmer ordered the study as part of a broader executive directive aimed at assessing Michigan tariff impact and how recent policies are affecting the state’s economy.

Michigan agriculture revenue falls sharply in export markets due to tariffs

The MDARD report shows that Michigan’s food and agriculture sector supports more than 800,000 jobs and contributes nearly $126 billion annually to the state’s economy.

In 2024, Michigan set a record by exporting almost $3 billion in food and agricultural products. But comparing the first half of 2025 to the same period last year, exports are collapsing:

Soybean meal exports are down 46 percent
Wheat exports fell 89 percent
Fresh cherry exports dropped 62 percent
Fresh apple exports declined 58 percent

Export losses are linked to retaliatory tariffs from countries including Canada and China, which have imposed duties as high as 140 percent on U.S. agricultural goods.

Consumers and farmers feel bite through rising costs and packaging expenses

Tariffs have increased input costs for producers — for example, through packaging materials. Steel and aluminum tariffs may raise costs for canned food manufacturers by up to 12 percent, which will likely be passed on to consumers.

Governor Whitmer emphasized that tariffs are “raising the cost of groceries, making it harder for Michiganders to feed their families,” and warned that farmers face mounting uncertainty.

MDARD Director Tim Boring said that retaliation from trade partners is “jeopardizing agricultural jobs, disrupting rural economies and reducing Michiganders’ access to affordable food.”

Legislative responses and state budget implications amid national trade policy

In late July 2025, Governor Whitmer signed an executive directive ordering state agencies — including MDARD — to measure the impact of tariffs on rising costs, supply chain disruptions, and economic stress for farmers and consumers.

Michigan’s Senate appropriations recommendations include $250,000 in one-time appropriations for tariff impacts monitoring and evaluation, suggesting lawmakers expect long-term consequences. Michigan Legislature

Expert views point to hard choices ahead for Michigan’s farm sector

Academic and extension experts warn that higher input costs — fertilizer, packaging, machinery — combined with shrinking markets overseas, will squeeze farms with tighter margins. At Michigan State University Extension, for example, analysts say farms will have to adapt planting decisions and possibly accept lower commodity returns. Our Midland

Economic uncertainty may also discourage investment in infrastructure, reducing Michigan’s ability to absorb shocks. No verified source gives a specific projected gain or loss beyond what MDARD has released, but indicators point to increasing risk.

What Michigan tariff impact this means for families and food prices

For consumers, higher tariffs mean higher grocery bills. Packaged food items may see cost increases due to packaging tariffs; farm-to-table cost chains will feel pressure all along, from raw material to retail shelf. For farmers, especially those specializing in fruit like cherries and apples, or grains like wheat and soy, shrinking export demand may force production adjustments.

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