Tariff Shifts Cripple Michigan Businesses: Owner Seeks Refunds After Supreme Court Ruling

Tariff Volatility Creates Uncertainty for Michigan Businesses

LANSING, Mich — A Lansing-based importer says rapidly shifting tariff rates are creating significant challenges for small businesses across the country, and is calling on the federal government to provide refunds for tariffs already paid. The situation has been further complicated by recent Supreme Court decisions and subsequent executive actions.

Dan O’Leary, president of Silver Lead Company, which imports arts and crafts supplies, says the instability is making it nearly impossible to plan for the future. “I have no way to plan this. Is it going to be 15%? Is it going to be zero?” O’Leary asked, expressing frustration with the unpredictable nature of the current trade policy.

The Supreme Court struck down global reciprocal tariffs last Friday, but President Donald Trump responded over the weekend by signing an executive order enacting 15% global tariffs for the next 150 days. This swift reversal has left businesses like Silver Lead Company in a precarious position.

O’Leary explained that tariff rates on his products have fluctuated dramatically in a matter of days, shifting from 10% to 15%. This makes it difficult to determine pricing, introduce new products, or even make shipping decisions. He stated unequivocally, “We deserve the money back. Absolutely.”

The uncertainty extends beyond Lansing. Jason Miller, a professor of supply chain management at Michigan State University, noted that the back-and-forth policy changes are creating widespread disruption. “We’re now back to a tremendous degree of uncertainty about tariffs whereas last week at this time we had much more certainty about what was taking place,” Miller said.

Miller anticipates that many companies will pause purchases as they await clarity on which nations will face tariff reductions or increases. “These parties are waiting to find out what is the White House actually thinking. So they themselves are waiting for certainty,” he explained.

Senate Democrats have proposed legislation to refund tariffs paid by importers, but Miller cautioned that a quick payout is unlikely. “I would not expect next week or the week after that that all of a sudden an IEEPA tariff refund check is going to be hitting your bank account,” he said, acknowledging the potential for significant paperwork and delays.

O’Leary echoed this sentiment, stating that the current environment is unlike anything he has experienced in his years of running the business. “Never, never,” he said. “I can’t afford the tariff or the instability of it all.” He currently has a shipment of craft boxes from Colombia on hold, unsure whether to proceed with the purchase given the fluctuating tariff rates.

The situation highlights the challenges faced by businesses navigating a complex and rapidly changing global trade landscape. The Supreme Court’s decision striking down tariffs imposed under the International Emergency Economic Powers Act (IEEPA) could potentially lead to nearly $150 billion in refunds for businesses, according to reports. However, the subsequent imposition of new tariffs by the President has muddied the waters and created a new set of uncertainties.

While some businesses, like Maryland manufacturer Marlin Steel, previously supported higher tariffs as a way to level the playing field, the current volatility is impacting a wide range of industries. The average U.S. Tariff rate on all imports is currently around 17%, including levies imposed under IEEPA.