By John Somerlott, Legislative Assistant, Greater Spokane Inc.
In recent weeks, one issue has dominated headlines in federal politics: tariffs. Tariffs are taxes imposed on goods as they cross international borders, either imports coming into a country or exports leaving it. They can target specific countries or particular products and are typically used to protect domestic industries from foreign competition. Tariffs have historically been a selective tool of trade policy, as much of international trade was increasingly governed by free trade. Their recent surge and broad strokes use have sparked widespread concern. What is certain: tariffs can increase prices, especially if retaliatory tariffs escalate into a trade war.
At GSI, we’re actively monitoring this evolving tariff landscape. We’re in close contact with our DC lobbyist, the U.S. Chamber of Commerce, local businesses, and other stakeholders to stay informed and support our members. Our goal is to equip you with the resources and insights you need, whether that is taking action or just staying informed.
One way of doing this is by attending our peer networking events. These gatherings connect you with fellow business owners to exchange insights, share challenges, and explore practical, local solutions. They’re a valuable space for learning and collaboration as we all work to adapt to the impacts of tariffs and other economic pressures. GSI is also hosting a second Federal policy update call with our lobbyist in DC, Tim Peckinpaugh this Friday, April 25. Registration for that event can be found here.
What Are the Tariffs and Where Do They Stand Now?
On April 2nd, President Donald Trump announced his “Liberation Day tariffs,” imposing a flat 10% tariff on all U.S. trade partners. That base rate increased for countries with which the U.S. runs a trade deficit. This was contrary to claims that the tariffs would be “reciprocal” and based on existing tariffs and non-tariff trade barriers. Notably, some countries hit with higher tariffs already had trade agreements with the U.S that are intended to facilitate tariff-free trade.
A week after the tariff announcement, the administration paused the “reciprocal” tariffs but kept the 10% universal tariff in place. The pause excluded China, which had started its retaliatory tariffs on the US, prompting a new round of US countermeasures. As it stands, all imports are subject to at least a 10% tariff (with limited exceptions), with extremely elevated rates on Chinese goods, and higher tariffs on certain Canadian and Mexican products not covered under the United States-Mexico-Canada Agreement (USMCA). Sector-specific tariffs include 25% on autos, steel, and aluminum. Further expansions are expected, potentially targeting semiconductors and pharmaceuticals.
Proponents of tariffs often cite two primary objectives: securing more favorable trade agreements and revitalizing U.S. manufacturing that has shifted overseas. However, these goals can be at odds. If tariffs are intended to boost domestic production by making imports more expensive, the tariff needs to remain in place to shield U.S. industries from foreign competition. Yet, maintaining high tariffs is antithetical to free trade. A more balanced approach for those who support both objectives would be to craft trade agreements that include requirements for certain levels of domestic manufacturing in exchange for tariff exemptions. This principle underlies key provisions of the USMCA, which seeks to reconcile these competing aims.
Crucially for international trade, the U.S. cannot produce everything it consumes. Many goods, like coffee, chocolate, tropical produce, and critical minerals, can’t be produced domestically in sufficient quantity or at a reasonable cost. For example, U.S. coffee consumption is 282 times Hawaii’s total output, and even full use of U.S. nickel reserves would meet current demand for less than five years before running out.
For current tariff rate information, visit the Global Business Alliance Tariff Tracker.
How Have Tariffs Impacted Spokane and Washington?
Washington is one of the most trade-reliant states in the nation. In 2024, the state exported $57.8 billion in goods to global markets. Trade supported more than 160,000 jobs in 2022, underscoring just how essential it is to our economy. With China as our top export destination, accounting for $12 billion, and Canada and Mexico contributing just over another $12 billion combined, recent tariffs have hit close to home. Spokane alone exported over $800 million in goods in 2023, and the impacts are being felt across nearly every sector. Whether you buy the items directly that are being tariffed or not, something in your supply chain is highly likely to be significantly impacted.
One local prescription eyewear retailer shared that a major vendor warned prices for frames, sourced entirely from Europe and Japan, would double. They also expect continued cost increases in ophthalmic medications, which have already seen steady double-digit hikes and supply shortages.
If your business is being affected, we want to hear from you. Share your story with us by emailing [email protected] and let us know what you and your business are experiencing.
What Should I Expect Moving Forward with Tariffs?
The future of tariff policy remains uncertain. While no one has a crystal ball, current expectations suggest tariffs will stay in place in some form until new trade agreements are negotiated. Tariffs on China and key sectors, such as autos, steel, and aluminum, are likely to persist for the foreseeable future, although considerations are being made for some new exemptions. It is unclear what will stick if tariffs are expanded as well.
The USMCA, which replaced NAFTA during President Trump’s first term, is still in effect, but it’s unclear whether it will be revisited. An additional challenge is that the USMCA is currently only exempting about half of import products. However, many of the products intended for exemption under the USMCA are still subject to strict compliance standards, limiting their actual benefit. Until more clarity emerges, businesses should prepare for continued volatility in trade policy.
What Can I Do About the Tariffs Now?
If you’re wondering how to navigate the current tariff landscape, we encourage you to visit the Washington State Tariff Information and Resource Guide. It remains one of the clearest, most comprehensive tools for managing your import and export needs in this evolving environment. For more information about tariffs and their impact, the United States Chamber of Commerce hosted a small business FAQ webinar.
One of the most powerful steps you can take is to share your story. As a partner-based organization, our strength lies in representing the collective voice of our business community. If you’re a Spokane-based business facing new challenges tied to tariffs, whether it’s a price increase from a supplier or trouble sourcing inputs, your experience matters. Sharing your story helps us advocate more directly on behalf of the Spokane business community. Please email your stories to [email protected]. You can also reach out directly to your congressional representatives here.
