Business Leaders Discuss Inflation Tariffs and Supply Chain Challenges Impacting Costs

The Michigan Legislature convened on September 4, 2025, to discuss critical issues surrounding economic competitiveness, with a focus on the impact of inflation and tariffs on small businesses. The meeting highlighted the ongoing challenges faced by local organizations due to rising costs and supply chain disruptions.

The discussion began with a representative addressing the significant burden that inflation has placed on businesses. It was noted that tariffs are likely exacerbating these challenges, particularly for small enterprises. The representative emphasized that the effects of these tariffs vary depending on geographic location, indicating a split opinion among members regarding their overall impact.

Further dialogue revealed that the issues of rising costs and supply chain difficulties were not new to 2025 but had been ongoing since before the pandemic. A specific example was shared about recent price increases at major retailers, such as Home Depot and Midwest Power, which attributed a 10% rise in prices to tariffs. This example underscored the broader implications of government policies on consumer prices.

The conversation also touched on the consequences of government shutdowns during the COVID-19 pandemic, which contributed to price increases. While the representative clarified that their organization does not hold a definitive position on tariffs, they acknowledged the complexity of the situation and the various factors influencing costs.

The meeting concluded with an appreciation for the testimony provided, emphasizing the importance of understanding how increased business costs ultimately affect consumers. The discussions underscored the need for continued dialogue on economic policies that support small businesses while addressing the challenges posed by inflation and tariffs.