Seattle-based businesses are assessing the financial effects of tariffs enacted during the Trump administration as Thursday marks one year since the implementation of the “Liberation Day” tariffs.

Tariffs Aimed at Trade Imbalances

The tariffs were initially introduced to address what President Trump described as a national emergency stemming from trade imbalances with various U.S. trade partners. The initial tariffs were set at 10% and intended to stimulate domestic manufacturing and protect American jobs.

Impact on Local Businesses

Mew Pongpituk, owner of King’s Oriental Foods in Seattle’s Chinatown-International District, explained the challenges she’s faced. Her business relies on over 700 products shipped from China and Thailand, supplying approximately 300 restaurants across Western Washington.

Rising Costs and Reduced Sales

Pongpituk estimates her costs have increased by as much as 20% over the past year due to the tariffs. This led to temporary reductions in stock orders. “I can tell that my sales were a little bit lower last year during the tariffs, and a lot of my customers went out of business, too,” Pongpituk explained.

Economic Analysis of the Tariffs

Economic Commentator Thomas Fellows estimates the average household has spent an additional $1,300 over the year due to the tariffs. “There’s been higher prices, fewer choices, lower quality. Ninety-percent of the tariffs are paid by consumers,” Fellows stated.

Mixed Results for Manufacturing

While some manufacturing jobs have returned in the short term, Fellows believes the tariffs have had a net negative impact on both businesses and consumers.

Differing Political Perspectives

State Republican Party Chairman Jim Walsh offered a different perspective, stating that many businesses are more concerned with state-level policies. He argues tariffs can be effective tools for negotiating better trade deals.

Focus on State Business Costs

“Nobody loves tariffs, but if you use them effectively, you do end up with better trading arrangements, whether it’s services or things manufactured,” Rep. Walsh said. “The businesses I talk to are worried more about the cost of doing business here in this state: the Business and Occupation Tax the bevy of different sales taxes.”

Ongoing Concerns and Potential Relief

Pongpituk remains hopeful about recouping some of the increased costs. A recent report from the Association of Washington Business indicates concern over tariffs decreased in late 2025, falling from 37% to 30%, but over half of employers still report negative impacts. The report also showed that the majority of businesses have passed increased costs onto consumers.