We are in a trade war Washington leaders, business sectors largely express confusion and concern at Trumps sweeping tariff announcement
Washington state officials are sounding the alarm over the economic implications of new tariffs announced by President Trump, which range from 10% to 49%. Lt. Gov. Denny Heck highlighted the unique vulnerability of Washington, being the most trade-driven state in the nation. He described the tariff plan as "faulty," citing its potential to create instability for businesses that require a predictable economic environment.
Chief economist Dave Reich echoed these concerns, indicating an "elevated level of risk" in economic forecasts due to the rapid changes in trade policy. Heck also pointed out that the agricultural sector, which is already struggling, could be hit particularly hard. He warned that the tariffs could lead to inflation and higher prices for consumers, effectively declaring a trade war with the announcement. The uncertainty surrounding investment decisions could further hinder economic growth in the state. As officials digest the implications of these tariffs, many economists may be forced to revise their projections for a recession this year.