NextFin news, Michigan Governor Gretchen Whitmer delivered a speech on Tuesday in Lansing outlining the urgent need to protect and defend Michigan’s economy amid economic uncertainty she attributes to President Donald Trump’s tariffs. The address also focused on the stalled state budget negotiations that risk a government shutdown by October 1, the start of Michigan’s new fiscal year.
Whitmer emphasized that federal tariffs have caused economic instability, massive job losses, and troubling signs for the nation’s manufacturing sector, which heavily impacts Michigan’s economy. She called on elected leaders to set aside politics and work together to pass a balanced, bipartisan budget that lowers costs and invests in education, healthcare, public safety, and infrastructure.
The governor’s office did not specify the exact time of the speech but confirmed it took place on Tuesday, September 16, 2025, at the state capital in Lansing. The speech was aimed at state lawmakers amid stalled budget talks between the Republican-majority House and Democratic-majority Senate. If no agreement is reached by October 1, Michigan faces a government shutdown.
Budget negotiations have been hindered by funding and policy disagreements, lower revenue projections, and demands for a long-term road-funding plan. Whitmer’s proposed budget earlier this year included a 41% increase in school funding and aimed to lower costs, create jobs, improve roads, and support seniors.
Lieutenant Governor Garlin Gilchrist II supported Whitmer’s call, highlighting the need to invest in people and protect good-paying jobs to help Michiganders thrive amid economic headwinds.
Whitmer’s office cited data showing that tariffs on goods from major trading partners such as Mexico, Canada, and China range from 25% to 35%, disproportionately harming Michigan’s auto industry, which accounts for about 9.2% of the state’s GDP. The tariffs have led companies to lay off workers, raise prices, and close operations, with American consumers estimated to lose between $2,100 and $4,900 annually due to increased costs.
The governor referenced a revised jobs report indicating the U.S. added nearly one million fewer jobs in 2024 and early 2025 than previously reported, underscoring the economic challenges facing Michigan and the nation.
Michigan last faced a government shutdown in 2019, which was averted after preparations to close road construction, state parks, and Secretary of State branches. The current budget impasse raises similar concerns if lawmakers fail to reach a spending agreement.
Whitmer’s speech sought to highlight the stakes involved and urge bipartisan cooperation to ensure Michigan’s economic stability and avoid disruption of state services.
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