WA businesses: Americans will end up paying for tariffs

Washington businesses are warning that Americans will end up paying for President Donald Trump’s sweeping tariffs.

The U.S. imposed a 35% tariff on Canadian imports Friday. Other tariffs will take effect across the globe on August 7, including a 15% tariff on about 40 countries that the U.S. has a trade deficit with and a 10% on those we run a surplus with.

Some countries, such as Switzerland and Brazil, face much higher tariffs. But it’s not necessarily foreign countries that will pay the price, said Chuck Horne, head of Finance for the Seattle-based Uwajimaya Asian Market.

“A tariff is, in effect, an import tax. It is paid to our government, not by China, not by Japan, but by importers here in America,” he said.

Those importers include Uwajimaya. But Horne said such widespread tariffs will affect all grocers, not just specialty stores like Uwajimaya, which brings a lot of products in from Asia.

He said because grocers operate on thin margins, they will have to pass along some of those increased costs to customers.

Seattle-based clothing company increases prices

Barry Barr, founder of the Seattle-based outdoor clothing company, KAVU said his company has already had to increase prices by 10 to 15%, as it faces higher costs for items such as cotton canvas, zippers, and buckles.

Barr said manufacturing more of their products within the U.S. is cost-prohibitive because KAVU would have to buy sewing machines. None are made in the U.S.

“Therefore, the machines would be hit with a higher tariff, making them entirely too expensive to import,” he said.

Erik Nelson is the founder of HDG Building Materials, which imports materials to create paving, decking, and other products for construction.

“We support American manufacturing and innovation, but we also need access to world-class components to stay competitive,” he said.

He said the tariff-fueled trade war has also weakened the U.S. dollar, which has raised prices for manufacturing.

“Forty percent of our imports are for manufacturers who are then exporting products,” Alex Jacquez, Chief of Policy and Advocacy at the left-leaning Groundwork Collaborative in Washington, DC, said.

Sen. Murray comments on sweeping tariffs

Washington U.S. Senator and Democrat Patty Murray said the sweeping tariffs are bad for business and U.S. consumers, because prices will increase for everything from food and baby products to electronics and cars.

“For all his talk about trade deals, apparently a good deal to Trump is this: Americans pay more,” she said.

Trump insists his trade policies will bring wealth, jobs, and respect to the U.S. He has argued that other countries have taken advantage of the U.S. and that the tariffs will correct a trade imbalance.

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