News Summary
Kris Johnson, President of the Association of Washington Business, addressed pressing issues affecting the state’s manufacturing sector amid rising tariffs and new taxes. With 72% of AWB members impacted by these economic pressures, local manufacturers report market losses and employment challenges. The backdrop includes new taxes aimed at addressing budget shortfalls, raising concerns from major business leaders. As Washington navigates a dual economic challenge, the future remains uncertain for businesses relying on manufacturing and international trade.
Seattle, Washington – The economic climate of Washington state is growing increasingly concerning, as Kris Johnson, the President of the Association of Washington Business (AWB), addressed both local and federal lawmakers about the adverse impacts of tariffs, taxes, and regulations during his “State of Manufacturing” speech at Terminal 46. Johnson’s speech, delivered to business leaders and government officials, highlighted the struggles faced by the manufacturing sector amid new state taxes and rising tariffs.
During his address, Johnson reported that 72% of AWB members have felt the effects of existing or proposed tariffs under the Trump administration. The manufacturing industry, which is vital to Washington’s economy, is grappling with the dual challenge of declining exports and increased costs. A significant number of manufacturers are experiencing “lost markets,” with one in four indicating a contraction in their export markets. Additionally, one in five members reported canceled orders and delayed investments, while over a third have postponed capital projects. Nearly 20% of businesses are delaying hiring, and some are even considering layoffs to navigate the challenging economic landscape.
The backdrop of this economic tension is a recent implementation of new taxes in Washington state to address a multi-billion-dollar budget shortfall. Microsoft President Brad Smith has also raised concerns regarding the state’s business environment, specifically following a series of layoffs triggered by these tax increases.
The Terminal 46 event marked the kickoff of AWB’s ninth annual Manufacturing Week bus tour, which aims to highlight the state’s manufacturing achievements. Given that over 40% of jobs in Washington are related to international trade, it is essential to understand the implications of current trade policies. In 2024, the state exported nearly $58 billion in goods, with around $12 billion or 21% going to China, Washington’s largest trading partner.
Recent months have seen cargo traffic spikes, with the Northwest Seaport Alliance reporting a 28% surge in February as businesses rushed to import goods ahead of impending tariffs. However, retaliatory tariffs are also threatening Washington’s significant agricultural exports, including products such as apples and cherries. Local businesses are feeling the pressure too; a coffee shop owner reported cost increases of about 10% due to tariffs, forcing him to halt expansion plans while squeezing consumer prices.
Potential consequences of these tariff policies loom large, with projections from the Washington State Office of Financial Management estimating over 31,000 job losses statewide. Alongside this, forecasts indicate rises in grocery and clothing costs, placing additional financial strain on residents. Governor Ferguson has spoken out against the detrimental effects of tariffs on Washington families and businesses, arguing there is no positive scenario for state residents.
In contrast, President Trump defended the use of tariffs, claiming they are effective tools for resolving trade conflicts. Washington state officials, such as Governor Ferguson and U.S. Senators Maria Cantwell and Patty Murray, are actively engaging in legal challenges and legislative efforts to mitigate the tariffs’ impact. A significant legal case regarding the tariffs is expected to be considered by the Supreme Court, underlining the broader implications for Washington’s strong export economy and its various industries.
As the state navigates these economic challenges and ongoing legal battles, the future remains uncertain for many businesses and workers who depend on a healthy manufacturing sector and international trade.
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Additional Resources
- KOMO News: AWB Addresses Lawmakers on Tariff Impacts
- Washington State Standard: WA Could Lose Billions in Revenue from Trump’s Tariffs
- Axios: Trump Tariffs Impact on Washington Exports
- Encyclopedia Britannica: Tariffs
- Google News: Washington Tariffs
Author: STAFF HERE WASHINGTON DC
WASHINGTON DC STAFF WRITER The WASHINGTON DC STAFF WRITER represents the experienced team at HEREWashingtonDC.com, your go-to source for actionable local news and information in Washington, DC, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and regional news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the National Cherry Blossom Festival, Kennedy Center Honors, and the Washington Auto Show. Our coverage extends to key organizations like the Greater Washington Board of Trade and Destination DC, plus leading businesses in government contracting and technology that power the local economy such as Lockheed Martin and Amazon. As part of the broader HERE network, we provide comprehensive, credible insights into the dynamic landscape of the Washington metropolitan area.
