Washington State has a lot to lose in the recent rounds of trade wars instigated by the federal government. The tariffs announced last month against Canada, Mexico, and the European Union of 25 percent on steel and 10 percent on aluminum imports are likely to drive up manufacturing costs, specifically in aerospace and construction where the metals serve as key raw materials. Friday, President Trump announced additional tariffs against China of 25 percent on up to $50 billion worth of electronics and other consumer goods to take effect in July 2018.
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Trade is vital to Washington’s economy. As a result, it is particular vulnerable to the impacts of the retaliatory tariffs announced over the weekend by China on key Washington exports like agricultural products and salmon. Canada, Mexico, and the EU have also imposed additional retaliatory tariffs on products including salmon, cranberries, and tree fruits, including apples and cherries. The state was the largest state exporter of goods to China last year, exporting close to $18 billion, including wheat, airplanes, seafood, apples, pears, and cherries.
According to a recent US Department of Commerce Report, Washington exported $77 billion to foreign markets, with China and Canada as our top trading partners. As the state’s top export, seafood processors and exporters such as Trident Seafood and Alaska Bearing Sea Crabbers have expressed particular concern. In a statement in the Seattle Times, Jim Gilmore of the At-Sea Processors Association explained,
“This is the biggest market in the world, and to have a disadvantage to every competitor in the world is a big deal.”
In 2017, China and Canada were the largest importers of Washington cherries. Mexico and Canada are is the biggest foreign markets for Washington apples importing an average of 18.6 million bushels per year or 56 percent of exports.
On Thursday, Senator Patty Murray issued a statement in opposition to the tariffs and a letter to President Trump urging him to rescind the tariffs and highlighting the expected effects on our state.
“As the most trade dependent state in the nation, Trump’s tariffs pose a unique and potentially devastating threat to Washington’s growers and our economy, as well as the millions of families who could see the costs of everyday goods go up. While we can and should recognize there is a problem with the overcapacity and oversupply of steel and aluminum from bad actors, President Trump’s reckless, scattershot approach is threatening relationships with our allies, including our neighbor Canada, and jeopardizing American exports. I urge President Trump: instead of alienating our allies, take steps to strengthen our relationships and work together to address unfair trade.”
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