News Summary
Business leaders in Washington are alarmed by potential economic disruptions from new tariffs and taxes. Kris Johnson of the Association of Washington Business highlighted severe impacts on the manufacturing sector, including job losses and increased prices. The situation has raised concerns about the long-term viability of businesses in the region, particularly with declining exports. A state report predicts significant hikes in grocery prices and job risks linked to tariffs on goods, revealing the urgent need for a collaborative response to mitigate these challenges.
Seattle, Washington — Business leaders in Washington have expressed deep concerns regarding the potential economic fallout from increased tariffs and new taxes imposed by state and federal governments. During a speech titled “State of Manufacturing,” Kris Johnson, President of the Association of Washington Business (AWB), highlighted the precarious state of the region’s manufacturing sector and the businesses that rely on it. The event took place at Terminal 46 and coincided with the launch of AWB’s ninth-annual Manufacturing Week bus tour, aimed at engaging with leaders in the industry.
Johnson cautioned that the recent policies, particularly from the Trump administration, could severely disrupt the economic landscape of Washington. With 72% of AWB members reporting negative impacts from current or proposed tariffs and a quarter indicating a contraction in their export markets, the alarm bells are ringing for many local businesses. It was noted that 20% of member businesses have experienced canceled orders, while over one-third have postponed capital projects. Additionally, nearly 20% of the membership is delaying hiring processes, with some even contemplating layoffs.
The manufacturing sector’s challenges are exacerbated by the state’s recent implementation of new taxes aimed at addressing a multi-billion-dollar budget shortfall. This has raised questions about the long-term viability of businesses already grappling with declining exports and increased tariffs.
Predicted Economic Impacts
A state report suggests that grocery prices in Washington could spike by over 16% due to the proposed tariffs, imposing significant burdens on family budgets. Overall, nearly 32,000 jobs are at risk, particularly within the agriculture and aerospace industries, which are heavily dependent on international trade. The report warns of projected revenue losses for Washington, which could amount to $2.2 billion by 2029 if tariffs persist.
Sector-Specific Consequences
Economic growth rates in Washington are expected to decline between 1.2% to 1.8% per quarter as a direct consequence of these tariffs. Sectors such as clothing, shoes, and automotive sales are projected to see price increases; estimates predict that clothing and shoe prices may rise by 7%, while used car costs could see a jump of around 23%. New car prices are anticipated to go up by 6% to 8%, alongside expected hikes in electricity and natural gas expenses.
Government and Business Responses
In response to the unfolding economic scenario, Washington Governor Bob Ferguson remarked that all scenarios indicate that proposed tariffs would adversely affect both residents and businesses. He also hinted at possible state actions, which could include withholding federal income tax collections in reaction to the policies emanating from the Trump administration.
The revenue forecast for the state is due later this month and may shed light on the immediate impacts of these tariffs on Washington’s economy. Meanwhile, the Port of Seattle Commissioner Ryan Calkins pointed to a chaotic environment that has sowed uncertainty among local businesses.
Trade Relations at Risk
Washington’s trade relationship with China has also suffered significantly. In 2024, exports to China were valued at $12 billion, making it the largest market for Washington’s goods. As businesses navigate these turbulent waters, they find themselves at the intersection of local and national economic policies. The chair of the Washington Republican Party has criticized Governor Ferguson, attributing the economic struggles in the state to his administration’s actions rather than the external tariffs.
As Washington moves forward, the urgency for a collaborative approach to address the looming threats to its economy has become increasingly evident. Business leaders are calling for dialogue to mitigate these adverse effects on the vibrant manufacturing landscape that is vital to the state.
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Additional Resources
- KOMO News: Business Leaders Concerned Over Tariffs
- Washington State Standard: Report on Revenue Losses from Tariffs
- Seattle Times: Businesses and Trump’s Tariffs
- Axios: Impact of Trump’s Tariffs on Washington State
- Kitsap Sun: Washington Exports to China Amid Tariffs
- Wikipedia: Tariffs
- Google Search: Washington State tariffs
- Google Scholar: Impact of tariffs on Washington businesses
- Encyclopedia Britannica: Tariff
- 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.
