President Donald Trump’s newly implemented tariffs on Canada and Mexico are putting some businesses in the Inland Northwest into a state of uncertainty.
“It is devastating,” said Dr. Ed Schweitzer, the founder of Schweitzer Engineering Laboratories (SEL) in Pullman. “It’s, I dare say, even a bit emotional.”
For Dr. Schweitzer, the decision to impose these tariffs feels like a move against our economic freedoms.
SEL has partners in close to 200 countries and serves more than 100,000 people through the manufacturing of electronics.
“Every day we have truckloads of equipment crossing the border to Canada, Mexico, back and forth each way,” Schweitzer said.
According to Trade Partnership Worldwide, the estimated cost of tariffs on Canada, Mexico, and China is $412 million in Idaho and could top even $4 billion in Washington.
For Spokane company Bouten Construction, the impacts of these tariffs are already being felt with increased prices for goods used on projects.
“We’re already getting messages, letters, what have you from the trade partners saying ‘Hey, this product is going to increase (in cost) by 10-15%,'” said Tim Thomas, President of Bouten Construction.
Thomas has already been preparing for the impact these tariffs could have.
“My biggest worry is that I have clients we’re getting ready to pull the trigger on, to start building for them and they’re going to say ‘Well we’re going to hold off on this,'” he said.
The Trump Administration’s goal with these tariffs is to strengthen the US economy. “The government needs revenue to try and close the deficit,” said Steve Scranton, chief economist for Washington Trust Bank. “President Trump feels that tariffs are the tax that he prefers.”
Scranton warns that retaliation from nations on which tariffs are now imposed could pose a real concern.
“The risk is especially for small businesses; they’ll have to pass those costs to the consumer,” he said.
For companies like SEL and Bouten Construction, the only thing this has resulted in so far is turmoil.
“The United States now has 51 states,” Schweitzer said. “The newest state is the state of uncertainty.”
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