The president’s tariffs are being challenged in court, but if implemented, they could jeopardize tens of thousands of jobs and raise prices on everything from shoes to electricity.
A new state report, released Thursday, predicts that food prices in Washington could increase by more than 16 percent if President Donald Trump’s proposed tariffs remain in place.
If a household currently spends $6,000 a year on food, its spending could reach about $7,000 in 2027 if the president’s import tariffs remain in place, according to an analysis by the state’s Office of Financial Management.
Governor Bob Ferguson presented these findings at a press conference Thursday at the Northwest Harvest Community Market, a hunger-relief organization south of Seattle.
“There is no scenario where these tariffs will benefit Washingtonians,” Ferguson said. “Don’t let the administration fool you. Washington families and businesses, as well as the state, will bear the cost.”
The 65-page report—which Ferguson called “unbiased” despite being prepared by the Democratic governor’s budget office—concludes that the president’s so-called “Dealing Day” tariffs could harm Washington in several ways. Nearly 32,000 jobs could be at risk. The agricultural and aerospace sectors could be severely affected in a border state whose economy relies heavily on international trade. Washington could lose $2.2 billion in state revenue by 2029 if the tariffs remain in place for the next four years. Over the same period, the state’s economic growth could decline by 1.2% to 1.8% per quarter.
The report indicates that consumers could feel the effects well beyond grocery stores. Clothing and shoe prices could increase by 7% year-on-year. Used car prices are expected to rise by about 23%, while new car prices could increase by 6% to 8%. Electricity and natural gas costs will also rise.
But these forecasts are far from certain, as Trump wages a legal battle to preserve the tariffs, which are central to his economic agenda.
A federal appeals court ruled last week that he lacked the authority to impose most of these duties. On Wednesday, the administration asked the U.S. Supreme Court to overturn that decision.
Democratic Senator Maria Cantwell of Washington led a campaign to reassert Congress’s role in setting trade policy in the face of Trump’s tariff plans, but to no avail.
Trump has argued that the tariffs are necessary to address the serious trade deficit that threatens national security. For months, markets have been affected by intermittent tariffs, announced, withdrawn, and then adjusted several times.
The Republican leader in Washington blamed the economic turmoil on the governor, who signed massive tax increases this year to close a multi-billion-dollar budget gap.
“The budget crisis will be Bob Ferguson’s fault, not Donald Trump’s,” said Rep. Jim Walsh, a Republican from Aberdeen. “Ferguson is trying to shift the blame. Don’t let him.”
Meanwhile, Ferguson has hinted at the possibility that Washington could suspend federal income tax collection in retaliation against the Trump administration. California Governor Gavin Newsom indicated in June that his state could take such a step.
“I don’t want to get into specifics right now, but I will simply say that the various options Washington state could adopt to manage the mess created by the Trump administration are being discussed extensively,” Ferguson said.
Ferguson is scheduled to meet Friday with the Northwest Ports Alliance, where the impact of the tariffs is expected to be on the agenda. The alliance, which oversees the ports of Seattle and Tacoma, has suffered fluctuations in imports and exports in recent months.
“This uncertainty is bad for business,” Port of Seattle Commissioner Ryan Calkins said Thursday. “It’s not good for our ports, our state, our workers, or our people.” »
The next state revenue forecasts are expected later this month. They could indicate whether Trump’s policies will have an immediate impact on Washington’s economy and influence how lawmakers approach the 2026 session, which begins in January.