Prof. Victor Menaldo writes an Op-Ed for The Seattle Times highlighting possible harm to Washington State's export economy if President-Elect Trump's tariffs are implemented.
Trump’s first tariff movie ran from 2018-19 and got panned by our North American trading partners. His administration levied import taxes of 25% on steel and 10% on aluminum imports from Mexico and Canada. In response, both imposed counter-tariffs on $20 billion of U.S. exports, targeting politically sensitive products from key electoral states. These counter-tariffs included a 25% tariff on U.S. steel and aluminum, as well as tariffs on agricultural products such as pork, cheese and whiskey....
Similar retaliation this time around would hit Washington particularly hard. Our agricultural exports to Mexico and Canada ($19 billion and $25 billion annually) would face immediate countermeasures. Our automotive and aerospace supply chains, representing over $80 billion in cross-border trade, would be severely disrupted.
Based on previous experience, a 25% tariff rate would add approximately $1,200 annually to household costs for Washington families and increase production costs for our manufacturers by 6%-8%. Boeing, one of our state’s largest employers, sources crucial components from Canada and Mexico. Disrupting these supply chains would compound the company’s recent challenges around the quality of its airplane manufacturing process and its tarnished reputation for reliability and safety, and potentially cost thousands of local jobs.
Please link here for the full read.