Washington state industries feel the sting of new tariffs
Seattle and the state are beginning to feel the heat from President Trump's tariffs — including a 125% levy on Chinese imports.
Why it matters: China is Washington's largest trade partner. The state's economy is also among the most trade-dependent in the nation, with more than 40% of jobs tied to international commerce, Sen. Patty Murray (D-Wash.) said in a statement.
Driving the news: On Wednesday, Trump paused reciprocal tariffs imposed by the U.S. this week, but kept 10% baseline tariffs in place while increasing tariffs on China to 125%, writes Axios' Ben Berkowitz.
The 125% effective tariff on Chinese goods follows a retaliatory spiral between Washington and Beijing.
By the numbers: In 2024, Washington exported almost $58 billion in goods worldwide — including $12 billion, or 21% of total exports, to China, according to the Office of the United States Trade Representative (USTR).
That's up from $4.1 billion exported to China in 2023, per the U.S. China Business Council.
Beef, seafood and wheat are among the state's top agricultural exports to China.
China was followed by Canada ($7.9 billion), Japan ($5 billion), Mexico ($4.3 billion), and South Korea ($3.1 billion) as Washington's top export markets last year, per USTR.
What they're saying:"Trade is the lifeblood of Washington state's economy," Sen. Maria Cantwell's office said in a tariff fact sheet.
State of play: The ripple effects of the tariffs are already surfacing across Washington's core industries, according to lawmakers and industry experts.
Backups at ports
Businesses rushed to import goods before tariffs took effect, leading to a 28% surge in cargo at the Northwest Seaport Alliance in February, KOMO reported.
An overflow of automobiles at Terminal 46 is "a direct result of the pulse that came in to beat the tariffs," said Port of Seattle Commissioner Fred Felleman.
But port officials warn of a sharp slowdown ahead, threatening longshore jobs and logistics contracts.
Farmers' fears
Washington leads the U.S. in producing apples, blueberries, hops, pears, spearmint oil, and sweet cherries, exports that are currently at risk due to retaliatory tariffs, said Murray.
Murray said Trump's first-term tariffs proved costly to Washington, causing apple exports to India to plummet by 99%.
Tourists staying home
Canadian travelers, frustrated by Trump's tariffs and rhetoric, are crossing the border into Washington far less often, leading to noticeable drops in spending at shops, restaurants, and hotels in Washington, the Seattle Times reported last month.
Canadians made up nearly 79% of Seattle's international visitors in 2023 and contributed $555.5 million in spending, about 6.7% of the city's total visitor spending, per Visit Seattle.
"Tourism greatly benefits local residents, and Canadian visitors play a key role in that impact," Visit Seattle's Liz Johnson told Axios in an email.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
18 minutes ago
- CNN
Ukrainian boxer to Trump: ‘Open your eyes'
Ukrainian boxer to Trump: 'Open your eyes' World heavyweight boxing champion Oleksandr Usyk shared a message for President Trump in an interview with CNN, asking him to help Ukraine as it continues its fight against a full-scale Russian invasion. 00:54 - Source: CNN Why China doesn't need the US auto market If there is one thing to be learned from Auto Shanghai - China's largest automobile show - it's that China has dozens of car brands that can rival Western ones. BYD surpassed Tesla's profits, but other EVs like those made by Zeekr, Xiaomi and Chery are quickly joining the race. CNN's Marc Stewart took a rare test drive of Zeekr's new 7GT. 00:44 - Source: CNN Analysis: Trump is in a crisis of his own making Trump tells President Vladimir Putin to stop after Russia launched its deadliest wave of attacks on Kyiv in nine months. This comes days after Trump said the US would walk out on efforts to make a peace deal in Ukraine if it didn't see progress. CNN's Nick Paton Walsh breaks down the latest. 01:03 - Source: CNN Russia launches strikes across Ukraine Russia launched waves of drones and ballistic missiles at multiple targets across a broad swath of Ukraine overnight killing at least four people in the capital Kyiv and wounding around 40 across the country. 00:32 - Source: CNN German leader on 'terrible' impact of Trump's tariffs In an interview with CNN's Jake Tapper, German Chancellor Friedrich Merz talks about the impact President Trump's tariffs are having on the auto industry. 01:13 - Source: CNN Greta Thunberg sails to Gaza Greta Thunberg has set sail with eleven other activists to Gaza. The activist group they're part of, The Freedom Flotilla Coalition, is attempting to bring aid and raise international awareness over the ongoing humanitarian crisis in the territory. 00:59 - Source: CNN Record rain floods Mexico City, traps people Mexico City was hit with record rainfall that didn't relent for more than five hours Monday night, marking the heaviest rain since 2017, according to water management officials. CNN's Valeria León walks a flooded avenue of the nation's capital after emergency crews worked through the night to rescue several trapped drivers. 00:43 - Source: CNN Gaza aid distribution turns deadly for third consecutive day For a third consecutive day, Palestinians came under fire while trying to receive aid from a distribution site in Gaza. According to the Palestinian Ministry of Health and Nasser hospital, at least 27 people were killed and dozens injured on June 3. 00:56 - Source: CNN Analysis: Why Ukraine's drone attack on Russia just changed the world CNN's Jim Sciutto explains why Ukraine's large-scale drone attack on Russian air bases thousands of miles behind the front lines struck fear into the heart of every global superpower 01:05 - Source: CNN Tomatoes fly at Colombia's largest food fight Around 20,000 revellers gathered in Sutamarchán, Colombia, to throw over 45 tonnes of tomatoes at each other. The Gran Tomatina festival, now in its 15th year, is hosted to celebrate the economy of Sutamarchán, which is centred around tomato production. Mayor Miguel Andrés Rodríguez said "between 70 and 80 percent of families [in Sutamarchán] live off tomatoes. This is a tribute to them." The festival uses tomatoes which are overripe, or otherwise not suitable for consumption. 00:30 - Source: CNN Palestinians shot dead near Gaza aid hub The Palestinian health ministry, hospital officials and multiple eyewitnesses say deadly gunfire killed dozens of Palestinians near an aid distribution site in Gaza on Sunday, with Israel's military denying that its troops fired 'within or near' the aid site. CNN Jerusalem correspondent Jeremy Diamond brings you up to speed on what we know about the weekend chaos. 02:31 - Source: CNN Palestinians describe deadly shooting near aid center in Gaza CNN spoke to multiple witnesses who recounted the deadly chaos that unfolded near a US-backed aid center in southern Gaza after more than 30 Palestinians were killed and dozens injured on Sunday, according to the Palestinian Ministry of Health. The health ministry blamed the Israeli military for the deaths while other witnesses claimed that local security personnel had also opened fire. Gaza Humanitarian Foundation, which runs the aid center, said there had been no gunfire at the site and Israel Defense Forces denied firing on civilians at or close to the site, calling such accusations 'false reports.' 00:55 - Source: CNN Palestinian UN envoy breaks down talking about Gaza's children The Palestinian ambassador to the UN made an emotional address, saying more than 1,300 children have been killed in Gaza since Israel ended the ceasefire in March. 01:19 - Source: CNN Political candidate wears body armor daily CNN's David Culver met César Gutiérrez Priego as he was readying to campaign for office in Mexico City. Gutiérrez Priego, who is running for a seat on the Supreme Court in Mexico, shows Culver the safety precautions he takes with political violence in Mexico at an all-time high. See Culver's full reporting on CNN. 00:53 - Source: CNN Harvard students and faculty speak out against Trump Harvard students and faculty spoke to CNN ahead of commencement as Donald Trump said the university should cap foreign enrollment. The Trump administration has recently sought to cancel $100 million in contracts with the school. 02:03 - Source: CNN Palestinians desperate for food rush US-backed aid site Scores of people rushed over fencing and through barricades in southern Gaza on the first day a US-Israeli-backed aid site was opened. CNN's Jeremy Diamond explains the desperate humanitarian situation that remains in the region. 01:22 - Source: CNN Journalists spit on at Jerusalem Day flag march Ultra-nationalist Israeli Jews chanted anti-Arab slogans as they marched through Jerusalem's Old City to mark Jerusalem Day. CNN's Oren Liebermann describes heavy police presence on the ground. Members of the crowd were seen spitting on journalists, including a CNN producer. 01:50 - Source: CNN Finland's president responds to Russian military activity along border CNN's Erin Burnett speaks with Finland's President Alexander Stubb about his country ramping up its military to deter potential Russian aggression. 02:16 - Source: CNN King Charles stresses Canada's 'self determination' amid pressure from US King Charles III delivered the ceremonial Speech from the Throne in the Canadian Senate. The address marks only the second time in Canadian history that the reigning sovereign has opened parliament, and the third time that the British monarch has delivered the address. 00:42 - Source: CNN Huge ship refloated after nearly crashing into house A larger container ship has been refloated after nearly crashing into a house in Norway. According to local police, the navigator had fallen asleep at the helm. 00:42 - Source: CNN Vehicle plows into crowd in Liverpool Police in the United Kingdom say a man has been arrested after a car plowed into Liverpool fans celebrating during the soccer club's Premier League trophy parade. 01:14 - Source: CNN
19 minutes ago
Trump admin live updates: President to announce 'Trump savings accounts' for parents, guardians
The accounts are part of Trump's megabill. 1:40 As the Trump administration continues to ramp up its focus on Los Angeles and threatens to send troops to the city amid anti-ICE protests, the fallout from President Donald Trump and Elon Musk's feud continues. This comes as Republicans in Congress continue to work on agreeing on language for Trump's "Big Beautiful Bill." Meanwhile, U.S.-China trade talks in London this week are expected to take up a series of fresh disputes that have buffeted relations, threatening a fragile truce over tariffs. President Donald Trump will host a roundtable Monday to formally announce the provision in his massive funding bill called the "Trump savings accounts," which will allow parents and guardians to invest funds in the financial markets on behalf of children, a White House official confirms to ABC News. The savings account would be applicable to children born between January 1, 2025, and January 1, 2029. The government would deposit $1,000 into a tax-deferred, low-cost index fund account that will track the overall stock market for each newborn. Additional contributions can go up to $5,000 annually. When the children reach adulthood, they are able to take out the money to cover things like college or a down payment on a home. "The passage of the One Big Beautiful Bill will literally change the lives of working, middle class families across America by delivering the largest tax cuts in history, increasing the child tax credit, AND by creating this incredible new "Trump Account" program, which will put the lives of young Americans on the right financial path," White House press secretary Karoline Leavitt said in a statement to ABC News. Multiple CEO's from companies, such as Dell Technologies, will appear with Trump to announce billions of dollars in collective investments into "Trump Accounts" for the children of their employees, according to the official. The event comes as the White House works to highlight Trump's so-called "One, Big, Beautiful Bill," as the Senate works through attempting to pass the budget bill and amid explosive criticism from Elon Musk last week. --ABC News' Lalee Ibssa
CNN
21 minutes ago
- CNN
A break in the trade clouds lifted consumers' spirits in May
Americans felt a whole lot better about prices and the job market in May, a month that featured a détente in the trade war between the US and China. Consumers' year-ahead expectations for inflation tumbled in May by 0.4 percentage points to 3.2%, according to the Federal Reserve Bank of New York's latest Survey of Consumer Expectations released Monday. It was the biggest monthly sinking of near-term inflation expectations since November 2022, when price hikes slowed much more than expected and the Federal Reserve delivered another heavy-handed effort to curb decades-high inflation. The May survey appeared to mark a more elated moment for consumers in the emotional roller coaster ride they've been on since President Donald Trump enacted sweeping actions, notably a frenetic domestic trade policy of escalating import taxes on many materials and products that come in to the US. Inflation expectations also declined (though not as sharply) at the three- and five-year time horizons, to 3% and 2.6%, respectively, New York Fed data showed. The Federal Reserve closely monitors gauges of near-, medium- and long-term inflation expectations as those could be self-fulfilling prophecies for consumers: If people think prices will be higher in the future, they might spend more now or even demand higher wages. In turn, businesses faced with higher costs might end up raising prices as a result. Economists wholly expect that high tariffs will result in higher prices for consumers, but how much and to what extent they become inflationary remains to be seen. The tariffs, and the fluctuating nature of Trump's negotiations, have driven uncertainty higher and sentiment to near-record lows. Consumers haven't just been anxious about higher prices, they're worried about jobs: The New York Fed's April survey, for example, showed that expectations for the unemployment rate to increase hit the highest level since the early days of the pandemic. Those fears have been quelled for now. In May, the mean perceived probability of the nation's jobless rate being higher than it is now dropped 3.3 percentage points to 40.8%. And people's own job security perceptions improved as well, with job separation expectations dropping 0.5 percentage points to 14.8%. Survey respondents also felt more optimistic about their chances of finding a job if they found themselves unemployed, and they also felt an inkling of improvement in their incomes rising (the median expected growth in household income nudged up by 0.1 percentage point to 2.7%). The May survey showed improvement across household finance expectations, including slightly better access to credit and less of a probability of a missed debt payment. Still, Monday's report showed that one pain point continues to be persistent for consumers: The grocery store run. The year-ahead expected change in food prices increased 0.4 percentage point to 5.5%, the highest rate since October 2023.
