ROCHESTER HILLS, Mich. – The U.S. Supreme Court is expected to soon weigh in on President Trump’s sweeping tariffs, which have been a source of ongoing uncertainty for businesses nationwide.
Rochester Hills businesses face uncertainty amid rising tariffs
In Rochester Hills, a survey revealed that four out of five companies would be affected by tariffs, with 80% of local businesses sourcing materials from overseas.
Mayor Bryan Barnett said the biggest challenge for local businesses is the uncertainty surrounding tariffs — whether they will go up or down, and what products will be affected. This uncertainty is hampering decision-making, causing companies to pull back on hiring and investment.
“We’re seeing businesses retrenching, pulling back on capital investment in 2025 and hesitant about 2026,” Barnett said. “Capital investment means new jobs, new equipment, and that’s the lifeblood of our community.”
Tariffs impact jobs, investment, and product variety in Rochester Hills
Jason Miller, a supply chain management professor at Michigan State University, explained that tariffs have increased on steel, aluminum derivatives, and other imported goods critical to Michigan factories. These include construction equipment from Japan and machine tools from Germany.
Miller noted that while inflationary costs from tariffs have not surged as much as expected, many companies are absorbing the costs rather than passing them on to consumers. However, manufacturing payrolls have been declining in 2025, and firms are planning less capital investment due to the uncertainty about tariffs and demand.
“Companies are facing tough decisions: raise prices, hire fewer people, or import less variety,” Miller said. “Consumers may see narrower product assortments as companies focus on their best-selling items.”
Miller also highlighted that tariffs are paid by importers employing Americans, not exporters, and that the revenue from tariffs, while significant, comes directly from local businesses’ operating costs.
Rochester Hills mayor calls for tariff certainty to support local businesses
Mayor Barnett emphasized the need for clear, stable tariff policies. He said businesses could adapt if tariffs were set at a fixed rate for a defined period, allowing them to price, invest, and plan with confidence.
“If the president said tariffs on everything from the EU are 25 percent for the next year and a half, businesses could build around that,” Barnett said. “Right now, the constant negotiations and changing rules create confusion and hesitation.”
“My job is to represent the residents and businesses of Rochester Hills and share what I’m hearing,” Barnett said. “They want certainty so they can compete and grow.”