In the Pacific Northwest, our economy is deeply rooted in global trade. From the orchards of Central Washington to the aerospace hubs of the Puget Sound, international policy isn’t just “news”—it’s a direct factor in our local business landscape.
Recently, the U.S. Supreme Court issued a landmark ruling that struck down most of the previous administration’s sweeping tariffs, stating they were imposed without proper congressional authority. This decision clarifies that under the Constitution, the power to levy taxes and tariffs rests solely with Congress. As a result, roughly $133 billion in previously collected tariffs are now in legal limbo, potentially opening the door for refund claims for Washington importers down the road.
The New 10% Temporary Tariff
In response to the ruling, a new temporary plan has been announced: a 10% global tariff on most imports for a 150-day window. Unlike the previous measures, this is being implemented under a trade statute designed for short-term action. It is important to note that this 10% is an additional layer on top of existing rates, not a replacement.
For Washington businesses—especially the nearly 10,000 small and mid-sized enterprises (SMEs) that drive our state’s exports—this adds a layer of complexity to an already high-cost environment.
Signs of Relief on the Horizon
While federal policy shifts, several major trade negotiations are moving toward lower barriers. For Washington’s diverse trade portfolio, these global shifts offer a glimmer of opportunity:
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India and the EU: These major markets have agreed to reduce tariffs on most goods, which could ease the path for Washington-based tech and services.
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U.S. and Indonesia: A new deal has lowered tariffs on Indonesian exports from 32% to 19%, providing relief for local manufacturers who rely on imported raw materials or specific commodities.
Strategy for Washington Business Owners
Washington remains one of the most trade-dependent states in the nation, with nearly 40% of our jobs tied to international commerce. When trade signals are mixed, the “wait and see” approach can be risky.
If your business is involved in importing, exporting, or local manufacturing, now is the time to:
- Review Your Margins: With the new 10% temporary tariff, ensure your pricing reflects the most current costs.
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Audit Past Payments: Keep a close eye on those $133 billion in “limbo” funds. If your business paid into those now-invalidated tariffs, you may eventually be eligible for a refund.
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Stay Local, Think Global: Lean into resources like the Washington Council on International Trade (WCIT) to stay updated on how these federal shifts impact our specific ports in Seattle and Tacoma.
The key to navigating 2026 is staying informed and planning conservatively. While policy continues to shift, staying agile will allow your business to pivot as new opportunities and challenges emerge.
