The Metro: Michigan businesses brace for impact from tariff hikes

Detroit boutique owner Rachel Lutz and supply chain expert Professor Jason Miller explain how tariffs are reshaping prices, choices, and shopping in metro Detroit.

The floor of The Peacock Room Boutique is rife with vintage treasures. Tables are covered with jewelry displays and a fashionable mannequin stands with a dark patterned evening dress. A chandelier hangs from the ceiling.

The Peacock Room sells accessories, clothing and dresses in a vast range of sizes and price points. Owner Rachel Lutz says tariffs are affecting her business in multiple ways.

More tariffs on imported goods took effect last week. 

The federal government is making big money from tariff revenues, which reached $29 billion last month. It is important to note that the money is coming from American wallets

Tariffs aren’t just numbers in a trade deal. They are hidden costs baked into the price of almost everything we buy and sell, and they have become a point of contention and anxiety with President Trump’s erratic maneuvers — announcing them, delaying them, increasing them, walking them back. 

He says his new tariffs aim to protect American industries, but they are hitting small businesses and big supply chains in Michigan and beyond. 

Economists warn that the state’s manufacturing base and retailers are especially vulnerable. That means higher costs for business owners, tougher choices on pricing, and potential sticker shock for many of us.

So we’re connecting the dots, from the global supply chain to the boutique sales floor with Rachel Lutz, owner of The Peacock Room, a women’s clothing and accessories boutique in Detroit, and Professor Jason Miller, interim chair of Supply Chain Management at Michigan State University. 

They joined The Metro’s Robyn Vincent to explain tariffs’ local and less understood impacts.

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Authors

  • Robyn Vincent
    Robyn Vincent is the co-host of The Metro on WDET. She is an award-winning journalist, a lifelong listener of WDET, and a graduate of Wayne State University, where she studied journalism. Before returning home to Detroit, she was a reporter, producer, editor, and executive producer for NPR stations in the Mountain West, including her favorite Western station, KUNC. She received a national fellowship from Investigative Reporters and Editors for her investigative work that probed the unchecked power of sheriffs in Colorado. She was also the editor-in-chief of an alternative weekly newspaper in Wyoming, leading the paper to win its first national award for a series she directed tracing one reporter’s experience living and working with Syrian refugees.
  • The Metro