SEATTLE — Two out of every five jobs are tied to trade and trade-related industries in Washington state, and the reciprocal tariffs announced this week by President Donald Trump are expected to have far-reaching implications.
The Northwest Seaport Alliance (NWSA), which works with the Port of Seattle and the Port of Tacoma, is a leading gateway for international commerce into the United States. The Alliance handled $70 billion of waterborne trade with 180 trading partners globally in 2022. Cargo operations coming in by ship support more than 58,000 jobs and generate about $12.4 billion in economic activity for the state.
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Cargo growth has been strong so far this year, and volumes have increased more than 25%, exceeding the five-year average for imports and exports. Shippers have been fast-tracking orders in an attempt to avoid tariffs, leading to a 34.7% increase in international imports.
Exports increased 4.5% and were 5.7% higher than the five-year average.
A big help in this lift is the strong demand for Washington state agricultural goods, and total container volume for the month reached 264,869 twenty-foot equivalent units (TEUs), a 25% increase compared to January 2024.
President Trump has issued a 10% tariff on all countries as well as additional tariffs on nearly 60 countries. The baseline tariff takes effect on Saturday and additional reciprocal tariffs will go into effect on Wednesday. A 25% tariff on all imported automobiles is already underway, as are previously announced tariffs on Mexico and Canada.
Trump’s reciprocal tariffs set to take effect April 9 include:
- China – 34%
- EU – 20%
- Vietnam – 46%
- Taiwan – 32%
- Thailand –36%
- Indonesia – 32%
- Switzerland – 31%
- India – 26%
- South Korea – 25%
- Japan – 24%
- Malaysia – 24%
- Israel – 17%
- Cambodia – 49%
The top trading partners shipping products through NWSA facilities are hit hard by this list. By volume, China sends the most goods through these ports, followed by Japan, Vietnam, South Korea, Taiwan, Thailand, Indonesia, Malaysia, India, and the Philippines.
China responded by announcing a 34% percent tariff on American imports, matching the one imposed by Trump.
By some estimates, Trump’s tariffs will cost American importers nearly $800 billion. The top imports, in descending order, are: furniture, machinery, motor vehicle parts, apparel, plastic articles, toys and games, footwear, iron or steel products, and textiles.
The top exports through NWSA include, in descending order: hay and forage, frozen potato products, dried distillers grain, scrap paper, paper and paperboard, wood pulp, foodstuffs, soybeans, dairy products, animal feed, apples, logs, scrap metal, fish, chemicals, and fresh potatoes.
There is a growing concern that tariffs will hurt critical sectors of the state economy, such as agriculture, manufacturing, and technology, and those costs will be passed on to consumers. Data provided by Sen. Maria Cantwell, D-Washington, shows that a 25% tariff on all Canadian and Mexican goods would add an estimated $144 billion a year to the cost of manufacturing in the United States. Those tariffs could also raise car prices by as much as $15,000, according to Cantwell.
Information provided by the White House claims that tariffs are an effective tool for achieving economic and strategic objectives. Tariffs can strengthen the U.S. economy and lead to the reshoring of industries like manufacturing and steel production.
The White House also cited a 2023 report by the U.S. International Trade Commission, which found that tariffs reduced imports from China and stimulated more U.S. production of the affected goods, with “very minor effects” on downstream prices.
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