Tariff impacts could top $4 billion in Washington state
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Businesses in Washington state would likely feel President Trump's tariffs — now temporarily delayed in two of the proposed countries — more acutely than companies in many parts of the U.S., per a new estimate shared with Axios.
Why it matters: Trump and others view tariffs as political cudgels for extracting concessions from targeted countries. But they're also likely to make stuff more expensive as companies pass higher costs along to everyday Americans.
Catch up quick: Trump on Saturday imposed tariffs of 25% on Mexican and Canadian goods and 10% on Canadian energy imports, plus he issued new 10% tariffs on Chinese imports.
Yes, but: On Monday, Trump delayed his planned tariffs against Mexican goods for a month, after Mexico promised to send more troops to the U.S. border area.
- The president also reached a deal on Monday to delay tariffs against Canada for 30 days, as Canadian President Justin Trudeau announced additional efforts to combat fentanyl trafficking along the U.S.-Canada border.
- Those pauses are temporary, ensuring conversations over the tariffs will continue.
Driving the news: As originally issued Saturday, Trump's proposed tariffs would have an estimated $232.7 billion national impact, per economic research firm Trade Partnership Worldwide and based on trade from January to November 2024.
- Washington state businesses would bear an estimated $4.1 billion of that impact, the 15th highest dollar figure among U.S. states, per the analysis.
- The impact of the tariffs would be largest for businesses in Texas ($47.1 billion), California ($32.6 billion) and Michigan ($27.8 billion).
How it works: The estimates are based on census data for foreign imports and reflect "the composition of current trade based on existing company-to-company relationships," Trade Partnership Worldwide president Daniel S. Anthony tells Axios.
Caveat: Tariffs may lead to less trade overall, Anthony notes — meaning past data isn't necessarily indicative of future tariff effects.
What they're saying: Over the weekend, the office of U.S. Sen. Maria Cantwell (D-Washington) shared a document outlining how much trade Washington does with Mexico, Canada and China, citing the potential for "significant and cascading impacts on local businesses and consumers" if the tariffs were to go forward.
- U.S. Rep. Suzan DelBene (D-Medina) appeared Monday on MSNBC saying the tariffs would be "devastating for our families" and would hurt farmers and the U.S. aerospace industry.
The other side: Trump told reporters last week that tariffs wouldn't increase prices on consumers, though he said they may cause "temporary, short-term disruption."
What we're watching: Trump also told reporters last week that he would "absolutely" impose tariffs on the European Union, though he offered few details.