Tariffs Enacted on Canada and Mexico: The Impact on Washington State

Tariffs went into effect against Canada and Mexico Tuesday.

The impacts to Washington State are estimated to have a $4 billion impact in total.

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Tariffs Threaten Washington Trade: Canada and Mexico Key Buyers of Apples and Seafood

Senator Maria Cantwell warned of the impact of these tariffs in a memo listing over $127 billion worth of imports and exports worldwide in 2023, when the state imported nearly $20 billion in goods from Canada alone.

In north-central Washington, Mexico and Canada are the number one and number two buyers of apples, respectively. The value of these purchases combine for more than $231 million every year.

For Canada, they spend most of their money on fish and seafood - more than $300 million a year.

Tariffs Could Drive Up Homebuilding Costs and Car Prices in Washington

There are other non-agricultural impacts to the state, too. In February, the Washington Center for Housing Studies published a study estimating $309 per square foot to build a home in Washington. With the Trump administration's tariff on steel exports and retalitory tariffs to follow, one can expect prices of homebuilding to increase over the life of these tariffs in the state.

According to Reuters, automakers are warning the country the price of cars could climb as high as 25 percent with these tariffs.

New Tariffs Trigger Trade War, Leaving Washington Consumers in the Crossfire

In a White House Fact Sheet, the tariffs are a response to Canada and Mexico's failure to comply with administration requests to curb illegal drug and cartel activity in both countries. The fact sheet cites Mexican drug cartels operating fentanyl labs in Canada, and says these tariffs are part of President Trump keeping his promise to stop the flood of illegal immigrants and drugs.

The World Trade Organization says tariffs give a price advantage to locally-produced goods over similar imported goods - raising revenue for governments.

These tariffs implemented Tuesday put a 25 percent tariff on imports from Canada and Mexico. Canada will respond with 25 percent tariffs of their own on the U.S. while Mexico responded with tariffs of their own.

Economic experts across the spectrum agree - these tariffs will find their way to higher prices for consumers. The question is how much and for how long. Only time will tell.