5 days Ago By Thomas Clouse - The Spokesman-Review, Spokane, Wash. (TNS)
SPOKANE — For business leaders trying to make sense of President Donald Trump's ever-changing tariff policy, the state of Washington has launched an online guide . Information includes the tariff percentage from each country and tips to possibly avoiding higher costs. Trump on last week paused a daunting list of what he called reciprocal tariffs, which largely were based on corresponding trade imbalances with those countries, after his earlier announcement sent all major stock market indexes into a tailspin.
Even though Trump dropped most tariffs down to a baseline 10%, except for things like steel, aluminum and duties of 25% for many goods from Canada and Mexico, those fees paid by importers most likely will lead to higher prices for consumers. Navigating the changes and uncertainty, while trying to budget for a business, can be daunting. To help, the Washington state Department of Commerce has developed a resource guide to help businesses quickly find answers and offer a few tips, director Joe Nguyễn said in a news release.
"Washington is one of the most trade-exposed states, and our intent is that this guide will help businesses better understand and respond to the impacts of these tariffs" Nguyễn wrote. "Our business community needs all the help it can get navigating these obstacles, and Commerce is committed to helping them succeed no matter what's happening at the federal level." They aren't alone.
According to the Washington Post, a number of major Wall Street firms forecast that a recession would be the likeliest outcome of an all-out trade war. Economists at Goldman Sachs began the week projecting a 65% chance of a recession. After Trump's pivot, they pared that estimate back to 45%.
Walmart cited tariff risks as a reason for backing away from its previous target for first-quarter profit growth. Delta Air Lines pulled its earnings forecast for the year because of "broad economic uncertainty around global trade," according to the Post. "There has been so much uncertainty — things are evolving by the day — that businesses just don't know what to do or how to plan," Bart Watson, president of the Brewers Association, a trade association for the craft beer industry, said Tuesday.
"Every time things change, it's another straw on a camel's back that already has a lot of straws on it." Grant Forsyth, the chief economist for Avista Corp., said that he would advise companies to do more than just try to factor in the higher costs from tariffs.
"When budgeting for operations, both in the public and private sectors, they really need to sit down and think about what if these tariffs take full effect," Forsyth said. "What I've been reminding people is the two-squeeze effect. One is the costs.
But the other is uncertainty these tariffs are causing. The economy could slow, so they could also get squeezed on the revenue side as well." He noted that tariffs are not paid by the exporting country, like China.
They are levied on goods that are imported into the United States. For businesses, these tariffs can impact supply chains, business costs and international strategy, said Grace Yoo, who is Commerce's assistant director for economic development and competitiveness. "Our team worked quickly to develop a resource site that businesses can use to better understand tariff exposure and adapt to changing global trade policy," Yoo said in the release.
"This online hub will help Washington businesses and workers navigate evolving tariff realities and their local impacts." The state resource page has a link to the Global Business Alliance Tariff Tracker, which lists each country and their corresponding tariff to let importers know what costs they may face. One of the first things businesses should figure out is what number they should apply the tariff.
For instance, under the "First Sale" rule, tariffs are calculated on the manufacturing cost rather than the price paid by the final buyer or trading house. "This can be critical for companies subject to higher tariffs on high-value items from China or elsewhere. Ensure you have documentation proving the goods were 'clearly destined' for the U.
S. and the transaction was at arm's length," according to the web page. Washington state also has 11 "Foreign Trade Zones" that allow importers to defer any tariffs until goods leave the zone for U.
S. consumption. If importers buy products directly from one of the foreign trade zones, they may eliminate the tariffs entirely, according to the site.
Several other organizations, including the Export Finance Assistance Center of Washington, the Tacoma-Pierce County Economic Development Board and the Economic Alliance Snohomish County are also providing information and assistance. "Commerce exists to strengthen communities," Nguyễn said in the release. "Responding to events such as this that have such a specific impact on day-to-day business is just one of the ways we are working to fulfill our mission.
" Forsyth, of Avista, said he had not seen the new tariff resource, but he lauded the state for taking the effort. "We are in an extremely trade-dependent state," he said. "The whole move toward tariffs really does put us in a difficult position.
Both east and west sides of the state have a lot at stake here." And while the tariffs have made life uncertain for business owners, the corresponding market swings have also confused the outlook for individual retirement accounts. The overall market losses for the year have wiped out trillions of dollars of value to those portfolios.
Forsyth said a jolt to the system like this past week should serve as a reminder for workers to have conversations with their financial advisers. "Now that you've seen what can happen with the markets, maybe you need to review that for your age," he said. "If you are fairly young, you have a lot more time to ride this out.
If you are older and closer to retirement, you need to ask, 'What is the risk I'm taking and do I need to reconsider that risk.' " Most financial advisers have helped clients navigate recessions like those caused by a pandemic or the home-financing crisis that led to the Great Recession. "Tariff-induced volatility is extremely unique for most financial advisers," Forsyth said.
"It's still OK to have a conversation with your financial adviser and ask, 'When we set this up, did I really reflect the risk I'm willing to tolerate?' " © 2025 The Spokesman-Review (Spokane, Wash.). Visit www.
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