Report warns tariffs could hit Washington families hardest

Governor Bob Ferguson says President Trump’s 2025 tariffs could have serious consequences for Washington families, businesses, and the state budget. 

The nonpartisan report from the Washington State Office of Financial Management projects that full implementation of the tariffs through 2029 would raise grocery prices 16% over two years. Clothing and footwear could increase about 7% in the first year, used cars could climb 20–25%, and new cars may rise up to 8%.

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The study also estimates Washington could lose about 31,900 jobs, with agriculture, food processing, and aerospace hardest hit. State general fund revenue could drop by $2.2 billion, and overall growth is expected to slow. 

OFM Director K.D. Chapman-See says the report provides scenarios to help state leaders plan support for communities and industries most affected by the tariffs. 

The analysis also notes that tariffs already in effect as of August 7 carry an effective rate above 18%, the highest since 1933. If extended through 2029, Washington could lose an additional 20,000 to 25,000 jobs. 

The tariffs remain in effect while the Trump Administration appeals a federal court ruling to the U.S. Supreme Court.