A new analysis from the Washington State Office of Financial Management (OFM) projects that recently announced federal tariffs could cost Washington’s economy $2.2 billion and more than 30,000 jobs over the next four years if fully implemented.
The report highlights the potential ripple effects for a state that is among the most trade-dependent in the nation, with $58 billion in exports and $62 billion in imports recorded last year. Sectors including aerospace, agriculture, food processing, and retail could be particularly affected. Higher costs are projected across a range of goods such as food, automobiles, clothing, and shoes. For example, OFM estimates food prices could rise 16% over the next several years and used car prices by as much as 25%.
Business and community leaders voiced concern about how these changes could influence household budgets and local operations. Nonprofits also noted increased demand for services, as families are already feeling the impact of rising costs.
While tariffs are a central factor in OFM’s forecast, other economic pressures such as recent state tax increases, household expenses, and global market fluctuations are also shaping the outlook. The state’s next official revenue forecast is expected later this month.
