01.31.25

Cantwell: Trump’s New Tariffs Will Drive Up Grocery & Gas Prices, Costs for American Manufacturers

WA consumers will pay the price as Trump chooses to tax goods from Canada and Mexico up to 25%, plus a 10% tax on goods from China

WASHINGTON, D.C. – Today, the Trump administration announced plans to impose a 25% tax on many goods imported into the U.S. from Canada and Mexico, and a 10% tax on goods imported from China, a move that will likely increase prices for consumers across the country, particularly in Washington state.

U.S. Senator Maria Cantwell (D-WA) – who serves as ranking member of the Senate Committee on Commerce, Science, and Transportation, as well as senior member of the Finance and Energy and Natural Resources Committees– issued the following statement:

"President Trump should not start trade wars that hurt American manufacturers, consumers, and farmers, especially when food prices and interest rates are so high. After two weeks in office and lots of executive orders, where are the administration’s ideas to lower costs for American families?  Let’s not put 25% tariffs that will increase consumer costs,” Sen. Cantwell said. “Canada and Mexico are already willing to partner with us to fight fentanyl and strengthen border security.  I hope the President will work with Congress on opening new markets, growing U.S. exports, and using the EXIM Bank to compete with China, instead of driving up prices at the grocery store and gas pump. I want an export strategy -- one that maximizes opportunities to sell American products overseas."

Two out of every five jobs in the State of Washington are tied to trade and related industries. In 2023, Washington state imported $19.9 billion of goods from Canada – primarily oil, gas, lumber, and electrical power -- making our northern neighbors Washington state’s largest trade partner.

Also in 2023, Washington state imported $1.7 billion in goods from Mexico, including motor vehicles, vehicle parts, and household appliances. All of these raw materials and goods will now be subject to a 25% tariff.

A 25% tariff on Canada and Mexico would add an estimated $144 billion a year to the cost of manufacturing in the United States.

Sen. Cantwell has been a champion for Washington state growers and exports. Agriculture and food manufacturing generate more than $21 billion per year and employ more than 171,000 people in the State of Washington. Small and family farms are key contributors, making up 89% and 94%, respectively, of Washington’s farms. 

Sen. Cantwell was the leading voice in negotiations to end India’s 20% retaliatory tariff on American apples, which devastated Washington state’s apple exports. In September 2023, India ended its retaliatory tariffs on apples and pulse crops following several years of Sen. Cantwell’s advocacy.

In May 2023, Sen. Cantwell sent a letter urging the Biden Administration to help U.S. potato growers finally get approval to sell fresh potatoes in Japan. In June 2023, Sen. Cantwell hosted U.S. Sen. Debbie Stabenow (D-MI), then-chair of the Committee on Agriculture, Nutrition, and Forestry, in Washington state for a forum with 30 local agricultural leaders in Wenatchee to discuss the Farm Bill.

In 2022, Sen. Cantwell spearheaded passage of the Ocean Shipping Reform Act, a law to crack down on skyrocketing international ocean shipping costs and ease supply chain backlogs that raise prices for consumers and make it harder for U.S. farmers and exporters to get their goods to the global market.

In August 2020, during the height of the COVID-19 pandemic, Sen. Cantwell sent a letter to then-Secretary of Agriculture Sonny Perdue requesting aid funds be distributed to wheat growers. In December 2018, Sen. Cantwell celebrated the passage of the Farm Bill, which included $500 million of assistance for farmers, including those who grow wheat.

In 2019, Sen. Cantwell helped secure a provision in the $16 billion USDA relief package, ensuring sweet cherry growers could access emergency funding to offset the impacts of tariffs and other market disruptions.