A senior commerce official in Washington has noted the adverse effects of tariffs, emphasizing their role as a de facto tax on American consumers and businesses. Joe Nguyen, Washington's commerce director, stated in an interview with Seattle radio station KUOW, "Tariffs often function as a tax on American consumers and businesses." He highlighted that approximately 93 percent of tariffs are transferred to consumers, leading to increased costs.
Nguyen underscored the challenges faced by agricultural sectors reliant on global exports, such as apples, cherries, and hops, stressing the necessity for stable trade policies to ensure economic stability. "Washington state can't fully insulate itself from reckless federal policies," he remarked, pointing out the global repercussions of impulsive trade decisions. The state's economic framework heavily depends on international commerce, with 40 percent of jobs linked to trade and annual exports valued at around $60 billion.
China, a critical market for Washington, received $857 million in produce exports in 2023, as indicated by a fact sheet from US Senator Maria Cantwell. Cantwell warned of the potential impact of retaliatory tariffs on farmers, referencing past experiences during the Trump administration. "When retaliatory tariffs strike our farmers, just as they did in the first Trump administration, it's not going to be fun. It's going to be a nightmare for our farmers," she stated during a Senate meeting.
In neighboring Oregon, Treasurer Elizabeth Steiner expressed concerns about tariffs exacerbating inflation, causing job losses, and hindering long-term economic growth. "Government should be predictable and steady," she noted, emphasizing the reliance of businesses and families on consistent policymaking. Economists estimate that tariffs on key markets like Canada, Mexico, and China could add $1,200 annually to household expenses, a burden for many Oregonians.
An industry expert highlighted the enduring impact of the US-China trade war on the fresh produce market. Alexis Taylor, chief global policy officer at the International Fresh Produce Association, noted that the US has lost market share in China's fresh produce sector, suggesting that regaining it will demand more than just tariff removal. "When you lose some of these markets, it's very hard to get them back," Taylor said, pointing to structural shifts in global supply chains and China's diversification strategies.
Source: China Daily