Trump tariffs could cost WA $2.2B, Gov. Ferguson says

Trump asks US Supreme Court to step in on tariffs

President Donald Trump is asking the U.S. Supreme Court to quickly make a decision on whether he has the authority to impose his sweeping tariffs under federal emergency law.

President Trump's proposed tariffs could cost Washington $2.2 billion in general fund revenue by 2029, according to an analysis from the state's Office of Financial Management.

Washington Governor Bob Ferguson shared the report's findings in a press conference on Thursday.

The analysis found that, if Trump's "Liberation Day" tariffs are enacted, costs will skyrocket for Washington families, thousands of jobs would be lost and billions of dollars in state revenue would be lost.

Findings from WA report

Dig deeper:

The OFM report estimates the financial impact if Trump's tariffs are fully implemented and maintained through 2029.

It remains to be seen if his sweeping tariffs will remain in effect — a federal appeals court ruled last week that they are illegal, a decision which the Trump administration is hoping the U.S. Supreme Court will overturn.

In the meantime, the tariffs are still in place while the Trump administration irons out their appeal. If the Supreme Court accepts that appeal, the tariffs will remain in effect until the justices make a ruling.

"The Trump Administration’s chaotic tariff implementation is already wreaking havoc on Washington’s economy and our businesses’ ability to plan for the future," said Gov. Ferguson. "This report makes it clear: The full implementation of President Trump’s tariffs will be devastating for Washington state families, businesses and our state budget."

By the numbers:

There are several key findings to the OFM report, which calculates that Washington would sit at an average or "effective" tariff rate of 27%. If that comes to pass, the report found that Washingtonians will face:

• Higher prices for food: Groceries are estimated to rise by 16% over two years. Clothing and footwear are expected to rise 7% in one year. Used car prices are expected to rise 20–25% over two years, and new cars by 6–8%.
• Tens of thousands of jobs lost: The state estimates they will lose about 31,900 jobs by 2029, especially in agriculture, food processing, and aerospace sectors.
• Less state revenue: Weaker sales are expected to lose $2.2 billion in general fund revenue by 2029.
• Slower growth: The state's quarterly GDP growth is expected to be 1.2–1.8 percentage points lower through 2029.

What they're saying:

"This report gives us a range of scenarios of how U.S. tariffs and retaliatory tariffs could impact the state's economy and future budgets," said K.D. Chapman-See, the Director of the Office of Financial Management. "It helps us see which industries could be affected, and where support for Washington families and businesses might be needed."

"Tariffs are a regressive tax that disproportionately burden low-income households," said Thomas Reynolds, CEO of Northwest Harvest. "At a time when federal food assistance programs are shifting and grocery affordability is increasingly out of reach, leadership across sectors must come together to ensure everyone has enough to eat. At Northwest Harvest, we’re working to get essential food to every county in Washington—and we see firsthand how Governor Ferguson is standing up for communities by spotlighting how tariffs deepen food insecurity."

Gov. Ferguson says he and the OFM are using the report to guide budgeting.

The Governor's Office says they are looking to protect core services and sectors most affected by the tariffs, in particular. Currently, state agencies are working to get ahold of ports, agriculture growers, manufacturers and other small businesses to manage supply.

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