SNOHOMISH COUNTY, APRIL 24: As President Donald Trump and his administration negotiate tariff increases with other countries, Snohomish County businesses are preparing for potential impacts.
The current administration claims that increased tariffs will boost U.S. manufacturing and protect jobs, investing tax dollars in the American economy. We now have some of the highest tariffs in recent history, and the U.S. is one of the most tariffed countries in the world.
Washington and International trade
More than 60% of jobs in Snohomish County are related to trade according to the Economic Alliance Snohomish County (EASC). Washington alone exported $6.2 billion in goods to foreign markets in 2023, with key countries being China, Canada, Japan and Mexico.
On Monday China had increased tariffs on the U.S. to 125%. The U.S. raised tariffs on China on April 9 to 145%, with other countries facing a blanket 10% until July. The White House announced last week that new tariffs and levies on some Chinese goods could reach a 245% tariff.
But as of Wednesday, April 23, The White House is reportedly considering reducing the 145% import tariff to 50%-65%, a senior White House official told the Wall Street Journal.
Daniel Tappana, EASC Director of Economic Development said that no matter how much the tariffs are, there will be immediate impacts on local businesses. Other impacts will be seen with time.
“There is a lot of uncertainty that comes from trying to forecast and project everything. If you have a tariff policy changing by the day, how do you lock in the prices for different products?” Tappana said.
Boeing and the Port of Everett
The Port of Everett, the third largest port in the state, is already seeing impacts of tariff increases. Currently they are moving containers out of their new Norton Terminal to be filled prior to tariffs going into effect, Lisa Lefeber, Port of Everett CEO/Executive Director wrote in an email.
The $40 million Norton Terminal is the first new cargo terminal to open on the West Coast in more than a decade.
The Port supports more than 40,000 jobs in the region and contributes $433 million in state and local taxes. It is the third largest container port in the state, behind ports in Seattle and Tacoma.
“It is unclear at this time as the goal-post keeps changing with respect to tariffs; however, in general when tariffs are threatened, and ultimately, when tariffs go into effect, trade and trade-associated jobs suffer,” Lefeber wrote.
The Port has also seen paralysis in decision-making by trade partners. Partners are hesitant on moving cargo and solidifying new cargo projects due to the uncertainty around tariffs, Lefeber wrote.
Regularly the Port trades with Japan, South Korea, Vietnam, China and Canada.
The Port of Everett specializes in high-value, oversized cargo such as parts for Boeing planes. Boeing is the Port of Everett’s largest customer, representing 25% of its cargo volume.
“We support the 777, 777X and 767 programs in Everett. If cargo volumes shrink due to China’s action, we can anticipate a reduction in aerospace freight movements,” Lefeber wrote.
On Wednesday, April 23 Boeing CEO Kelly Ortberg said that Boeing was “actively assessing” options for diverting jetliners to other interested parties.
When asked about tariffs, Boeing Media Relations said that they do not have a comment at this time.
Trickle effect, local impact
For larger companies with more cash reserves, waiting out policy uncertainty is more obtainable. But for smaller to medium-sized businesses, they have to be more nimble, Tappana said.
“Small businesses don’t have the cash flow to pause for four years,” Tappana said referring to President Trump’s current term, “They’re going to have to figure it out. It’s gonna hurt because, on top of that, you are looking at a potential recession.”
Co-owner Aaron Sheckler of Marcel, a bar on Rucker Ave, said that tariff increases haven’t hit them as badly as they initially thought, saying a lot of their products are already stocked in the U.S.
“But I can’t tell you how many emails I have received from our distributors and makers telling us to ‘get ready’ and that there will be a ‘shift in prices for you’,” Sheckler said.
Sheckler and partner Scott Hulme own two businesses together, both of which import products from other countries, including alcohol and home goods.
They are seeing a pause on wine shipments from Spain and Italy, seemingly waiting to see how policy will change. Sheckler said that they have pivoted to buying from local stores, which impacts their margins.
“I would say it’s less about price increases for us and more about that everyone has just paused the shipments, because they don’t want to send them until someone changes their mind… as soon as it hits the country, the tariff on that day, as soon as they hit the port, that’s that,” Sheckler said.
Sheckler said that for the past few months, prices on wine have increased between 50 cents to a dollar.
Shoppers can expect to see costs rise on goods such as seafood, coffee, fruit, cheese and nuts according to experts. You can also see a lower range of options as exports are paused or limited.
One of the White House’s main reasons for introducing higher taxes is to re-shore the supply chain to the U.S. to support American businesses. But Tappana and other economic experts say that will take time.
“In theory, these tariffs are intended to create American jobs. In practice, by the time those jobs get created, we will be on our way towards a new election,” Tappana said. “Time is one thing that never changes. The world is always turning.”
The workaround
When it comes to trade, diversification is extremely important, Tappana said. One way to tap into new markets overseas is through the Washington State STEP Export Voucher Program.
Lefeber wrote that when the aerospace industry suffered during the COVID-19 Pandemic, the Port was able to be “flexible and nimble, quickly taking on new cargo opportunities.”
“We will continue to rely on our strategic location, skilled workforce and flexible infrastructure to meet the economic needs of our area and nation,” Lefeber wrote.
Despite the uncertainty, Tappana believes that EASC, and Snohomish County as a whole, are ready to take it on.
“That is the thing about the economy, it always goes up, it goes down, it stays steady, it’s always moving. So, when it comes to tariffs, I know we will continue to navigate wherever it takes us,” Tappana said.
EASC will also be hosting a free webinar and Q&A 8:30- 9:30 a.m., Tuesday, April 29 to discuss potential tariff chances and impact on Washington businesses.
Resources for businesses
The Washington State Department of Commerce launched an online Tariff Information and Resource Guide this month in response to questions and confusion around tariffs. “Washington is one of the most trade-exposed states, and our intent is that this guide will help businesses better understand and respond to the impacts of these tariffs,” said State Commerce Director Joe Nguyễn.
Snohomish County International Trade and Investment
Port of Everett Foreign Trade Zone
U.S Chamber of Commerce FAQ: What you need to know about tariffs
