A new report from Washington's Office of Financial Management (OFM) projects that more than 30,000 jobs in the state could be lost by 2029 as a result of tariffs.
The analysis identified crop production, food, beverage, and tobacco manufacturing, along with aircraft manufacturing, as sectors most at risk. "These job losses may spill over into the broader economy, affecting support services like transportation, education, and health care," OFM stated.
By contrast, the report forecast growth in fabricated metals manufacturing, textiles and apparel mills, and transportation equipment manufacturing. "These gains suggest that select domestic industries may benefit from reduced competition with imports, prompting expansion and higher wages. However, the overall impact on labor income is negative," OFM added.
Food costs are expected to increase. Governor Bob Ferguson said during a press conference that grocery prices in Washington could rise by more than 15 per cent over the next four years. "We also predict a 7% spike in the cost of clothes and shoes in the next year, a 14% increase in natural gas prices, which, of course, push up utility bills," Ferguson said.
Thomas Reynolds, CEO of Northwest Harvest, said the organization is working to provide food across all counties. "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," he said in an OFM news release.
The report also projected higher vehicle prices, with used cars expected to increase by 20 to 25 per cent over the next two years, while new cars could rise 6 to 8 per cent.
State revenues could fall by US$2.2 billion by 2029, with trade-dependent communities most affected. "The Trump Administration's chaotic tariff implementation is already wreaking havoc on Washington's economy and our businesses' ability to plan for the future," Ferguson said. "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."
Source: My Northwest