This will cost ‘half of my total anticipated profit’: Seattle businesses fight to survive turbulent tariffs

The Trump administration’s shifting tariffs are wreaking havoc on Seattle businesses’ bottom lines and, in some cases, threaten their survival and the jobs they provide.

That’s what a group of Western Washington business and industry leaders is claiming. Flanked by Washington U.S. Senator Maria Cantwell, the group provided details on the impacts of the tariffs.

“Our brand is known for patented safe sleep products,” Jeff Damir, the COO of Seattle-based SwaddleDesigns, told KIRO Newsradio.

Damir said most of what they sell is made in China (outside of a small line of “Made in USA” products) where they have long-standing relationships with factories. The products manufactured in China are now subject to the changing tariffs.

“Last month, we brought in a container—a container with a value of about $200,000—and we had to pay an extra $20,000 to bring that in,” he explained. “This month, we’re bringing in another container. That container will cost us an extra $40,000 because the China tariffs went from 10% to 20%.”

Now? Swaddle Designs has a container of products to be shipped to the U.S. currently sitting in China. That container would cost them $300,000 in extra tariffs alone, given the 145% tariff increase.

They’re keeping it in China, hoping the tariffs will come down.

Can companies pivot to making products locally in the U.S.?

As for manufacturing products here? Damir told KIRO Newsradio it’s not practical or cost-effective.

“There’s just no way that we could ever bring production back,” Damir said.

What about businesses that already make their products in the U.S. with home-grown ingredients?

“I buy most of my ingredients locally, and I haven’t thought that I would be all that impacted,” said Molly Neitzel, the CEO of Molly Moon’s Homemade Ice Cream, a small Seattle-based chain. “What I didn’t think about until my CFO came to me is spoons.”

Molly Moon’s buys compostable spoons from a manufacturer in China, but under the current tariffs?

“The current structure will cost us about $240,000 this year,” Neitzel said. “That’s almost half of my total anticipated profit for 2025.”

A fractured relationship with Canada

It’s not just U.S. tariffs on imports causing challenges. Chris Stone, the deputy director of the Washington State Wine Commission, which represents more than 1,000 family-owned wineries and 400-plus farmers, said the tariffs have drawn retaliation.

“The best example would be Canada, our No. 1 export market, which literally evaporated,” Stone said. “Disappeared overnight.”

In response to the U.S. tariffs, Canada has banned U.S. alcohol sales—a loss of $10-12 million in business. Washington U.S. Senator Maria Cantwell pointed out that she helped promote American wines in Canada.

“I want you to know that I helped get British Columbia to put more Washington wine on their shelves,” Cantwell said.

She and Republican Iowa Senator Chuck Grassley have introduced the Trade Review Act, which they said would return most of the control over tariffs to Congress.

President Trump insists his tariffs will boost manufacturing in the U.S., give the U.S. leverage to reduce tariffs that other countries place on American products they import, and force countries to stop fentanyl from entering the U.S.

Heather Bosch is an award-winning for KIRO Newsradio.

Follow @http://www.twitter.com/heatherbosch