Michigan Retailers Report Tariffs and Uncertainty of Tariffs Affect Business

Michigan Retailers Association announces the results of a member survey on the impact of tariffs on retail businesses. The survey was conducted following the United States Supreme Court’s tariff decision on February 20th, and utilized the same approach as the spring 2025 tariff survey conducted after President Trump’s “Liberation Day” of tariffs on April 2 last year.

Key Statistics

Nearly 75% of Michigan retailers report seeing a negative or strongly negative impact from tariffs since April 2025.
More than half of Michigan retailers (56.1%) said uncertainty surrounding tariffs has affected their businesses, in addition to the tariffs themselves.

Largest Impacts from Tariffs

Increases in inventory prices top the list of tariff impacts for retailers. One member business surveyed shared, “Tariffs have raised my cost of goods by $50,000 this year.” But impacts to pricing aren’t the only direct impact of tariffs, as retailers have had to make adjustments in other areas of their businesses as well.

When asked about the direct impact of tariffs and the threat of tariffs on their business, 62% of retailers surveyed shared impacts on operational expenses, 51.5% have experienced impacts on future planning, and 48.5% have seen changes to sales volumes.

Another member surveyed stated, “Many of the items we are known for carrying have been discontinued for the short term due to excessive tariff cost increases. Customers are wondering why pricing is changing regularly and why certain items are no longer stocked or subbed to different items.”

Making Changes to Their Business Strategies

To combat tariffs, more than 83% of retailers have had to make adjustments to their normal business plans and operations. Over 62% have changed item pricing, nearly 29% have found new inventory or suppliers, and 24% have delayed, modified, or cancelled pre-planned projects because of tariffs. Only 16.7% of retailers surveyed reported no changes to their current strategies to combat the impacts of tariffs.

Michigan is home to more than 90,000 retail establishments, employing more than half a million workers (2025 Buy Nearby Economic Impact Study). The survey response demographic represents primarily small businesses, with more than 80% of retailers who responded to the survey being single-location retail businesses, and 85% of respondents employing fewer than 25 people. Nearly 70% of these retailers reported importing goods from China, Mexico, Canada, and other countries.