International Emergency Economic Powers Act Tariffs: The Impact on Washington State
1The Proposal
Since taking office, President Donald Trump has used the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on nearly all U.S. trading partners—measures that could significantly raise costs for U.S. importers and impact businesses and consumers in Washington state.
- February 1: Citing national security concerns related to fentanyl, IEEPA executive orders (EOs) issued related to Canada, Mexico, China, and Hong Kong.
- February 4: 10% tariffs on imports from China and Hong Kong take effect.
- March 4: 25% tariffs on Canada and Mexico take effect; tariffs on China and Hong Kong increase to 20%.
- March 7: Products from Canada and Mexico complying with U.S.-Mexico-Canada Agreement (USMCA) rules are exempted from IEEPA tariffs.
- April 2: Citing trade deficit concerns, IEEPA EOs issued imposing 10% tariffs on all countries and higher rates of 11% to 50% on key trading partners.
- April 5: 10% tariffs on all covered products take effect.
- April 9: Pause of all higher "reciprocal" rates for 90 days; "reciprocal" tariffs on China and Hong Kong increase to 125% (on top of fentanyl IEEPA tariffs).
- July 9: Scheduled end of pause and reinstatement of higher reciprocal rates.
Regardless of whether the administration ultimately imposes the full reciprocal rates or keeps a 10% universal baseline for most countries, the IEEPA tariffs will create significant costs for businesses and consumers in Washington state.
Based on 2024 import values, the 145% tariffs on China plus the other IEEPA tariffs could cost Washington companies between $18 billion and $21 billion in extra tariffs, or about $50 million to $60 million in new tariffs every day. The lower estimate reflects the 90-day "pause" continuing indefinitely, while the higher estimate reflects country-specific rates announced on April 2.
| Import Value, 2024 | Tariffs Paid, 2024 | Avg. Tariff Rate, 2024 | Potential New Total IEEPA Tariffs (full reciprocal rates) | Potential New Avg. Rate (full reciprocal) | Potential New Total IEEPA Tariffs (10% universal) | Potential New Avg. Rate (10% universal) |
|---|---|---|---|---|---|---|
| $62 billion | $2.0 billion | 3.2% | $21 billion | 37.9% | $18 billion | 32.9% |
2Fentanyl-Related IEEPA Tariffs
For Washington state, Canada, Mexico, and China are all among the top ten trading partners. The fentanyl-related IEEPA tariffs alone could generate an additional $4.2 billion in duties based on 2024 trade data—more than $11 million in new tariffs every day—even after excluding all USMCA-claiming imports from the higher rates.
China
The 20% fentanyl-related tariff on imports from China could add $2.2 billion to the total tariff burden paid by Washington companies. The tariffs on Chinese products have no exceptions and largely affect household and consumer imports into Washington state.
| Product | Import Value, 2024 | Tariffs Paid, 2024 | Potential New Tariffs |
|---|---|---|---|
| Toys | $1.2 billion | $0 | $243 million |
| Video game consoles | $585 million | $2 million | $117 million |
| Seats & parts | $431 million | $47 million | $86 million |
| Electric heaters | $326 million | $21 million | $65 million |
| Exercise equipment | $283 million | $29 million | $57 million |
| All other products | $8.3 billion | $1.2 billion | $1.6 billion |
Canada
The 25% fentanyl-related tariff on non-USMCA claiming imports from Canada could add $1.8 billion in additional duties annually, or nearly $5 million in new tariffs each day. Energy and lumber products, which generally do not claim USMCA in most cases, could bear the brunt of the impact. That said, Washington companies could try to show compliance to avoid IEEPA tariffs despite the lack of historical claims.
| Product | Value, 2024 | Tariffs Paid, 2024 | Potential New Tariffs |
|---|---|---|---|
| Crude oil | $6.0 billion | $5 million | $487 million |
| Petroleum gas | $3.1 billion | $0 | $307 million |
| Lumber | $563 million | $0 | $141 million |
| Wooden boards | $196 million | $0 | $49 million |
| Electrical energy | $342 million | $0 | $34 million |
| All other products | $7.6 billion | $8.5 million | $798 million |
Mexico
The 25% fentanyl-related tariff on non-USMCA claiming imports from Mexico could impose an additional $141 million in duties annually. While lower than China or Canada, it is nearly 50 times higher than current tariff levels on Mexican goods. Measures are likely to affect imports of technology and consumer products.
| Product | Import Value, 2024 | Tariffs Paid, 2024 | Potential New Tariffs |
|---|---|---|---|
| Refrigerators | $107 million | $50 | $27 million |
| Phones | $56 million | $0 | $14 million |
| Spirits | $35 million | $0 | $8.6 million |
| Electric heaters | $26 million | $0 | $6.6 million |
| Tubes & pipes | $18 million | $84,000 | $4.6 million |
| All other products | $1.2 billion | $2.8 million | $80 million |
3Reciprocal Tariffs & Subsequent Adjustments
On April 2, President Trump announced his "Reciprocal Tariffs," establishing a baseline 10% tariff on all imports, with higher rates—up to 49%—targeting key U.S. trading partners. One week later, on April 9, the administration postponed the reciprocal tariffs for 90 days and instead implemented a 10% across-the-board tariff. The exception was China, whose reciprocal rate was increased to 125% due to its retaliation against U.S. exports.
While some key products—such as semiconductors, electronics, pharmaceuticals, and lumber—are currently exempt due to their inclusion in Section 232 investigations, those investigations also seem destined to impose higher tariffs. Even with the sector exemptions, the potential impact on Washington state remains severe. Under the full reciprocal tariff framework, Washington importers could face an additional $14 billion to $17 billion in new annual tariffs depending on whether the "pause" is made permanent or rates rise for other countries.
Reciprocal Tariffs on China
Imports from China are unaffected by the pause and currently face reciprocal IEEPA tariffs of 125%—stacked on top of the 20% fentanyl IEEPA tariff, pre-existing Section 301 tariffs of up to 100%, and "regular" MFN tariffs. In 2024, Chinese goods made up nearly 20% of Washington's total imports. As a result, these imports alone could account for $13 billion in additional tariffs. None of Washington's top five imports from China are covered by the exemptions, meaning all face the full 125% tariff rate.
| Product | Import Value, 2024 | Tariffs Paid, 2024 | Potential New Tariffs |
|---|---|---|---|
| Toys | $1.2 billion | $0 | $1.5 billion |
| Video game consoles | $585 million | $2.0 million | $731 million |
| Seats & parts | $431 million | $47 million | $532 million |
| Electric heaters | $326 million | $21 million | $407 million |
| Exercise equipment | $283 million | $29 million | $353 million |
| All other products | $1.2 billion | $1.2 billion | $9.0 billion |
Full Reciprocal Rates — By Country
Excluding Chinese imports, the full reciprocal framework, as outlined on April 2, could add $4.7 billion to the annual tariff burden paid by Washington companies, or nearly $13 million every day. These tariffs could most affect imports from Vietnam, Japan, Taiwan, South Korea, and Thailand.
| Country | Import Value, 2024 | Tariffs Paid, 2024 | Avg. Tariff Rate, 2024 | Potential New Tariffs | Potential New Avg. Rate |
|---|---|---|---|---|---|
| Vietnam | $2.8 billion | $207 million | 7.4% | $1.2 billion | 51.7% |
| Japan | $6.8 billion | $107 million | 1.6% | $610 million | 10.6% |
| Taiwan | $1.6 billion | $37 million | 2.4% | $404 million | 28.1% |
| South Korea | $7.3 billion | $3.4 million | 0.0% | $320 million | 4.4% |
| Thailand | $928 million | $22 million | 2.3% | $302 million | 34.8% |
| All other countries | $31 billion | $290 million | 0.9% | $1.9 billion | 6.9% |
Full Reciprocal Rates — By Product
"Reciprocal" tariffs could affect a wide range of imports into Washington state, many of which are consumer goods including furniture, video game consoles, and knit apparel.
| Product | Import Value, 2024 | Tariffs Paid, 2024 | Avg. Tariff Rate, 2024 | Potential New Tariffs | Potential New Avg. Rate |
|---|---|---|---|---|---|
| Furniture | $540 million | $0 | 0.0% | $145 million | 26.9% |
| Video game consoles | $324 million | $0 | 0.0% | $142 million | 43.8% |
| Self-propelled bulldozers | $538 million | $0 | 0.0% | $127 million | 23.7% |
| Knit apparel | $300 million | $56 million | 18.7% | $116 million | 57.5% |
| Sound media | $471 million | $0 | 0.0% | $115 million | 24.6% |
| All other products | $49 billion | $610 million | 11.2% | $4.1 billion | 9.7% |
The 10% Universal Tariff — By Country
Excluding Chinese imports, continuing the 10% universal tariffs could still add $1.7 billion in new tariffs, or nearly $5 million per day. Like the full reciprocal tariffs, imports from Vietnam, Japan, Taiwan, and South Korea are most affected, though Germany replaces Thailand to round out the top five.
| Country | Import Value, 2024 | Tariffs Paid, 2024 | Avg. Tariff Rate, 2024 | Potential New Tariffs | Potential New Avg. Rate |
|---|---|---|---|---|---|
| Vietnam | $2.8 billion | $207 million | 7.4% | $269 million | 17.0% |
| Japan | $6.8 billion | $107 million | 2.4% | $245 million | 5.4% |
| Taiwan | $7.3 billion | $37 million | 0.0% | $126 million | 10.4% |
| South Korea | $1.3 billion | $3.4 million | 0.0% | $123 million | 1.7% |
| Germany | $31 billion | $11 million | 0.8% | $90 million | 7.9% |
| All other countries | $49 billion | $301 million | 1.0% | $820 million | 3.6% |
The 10% Universal Tariff — By Product
The 10% universal tariff applies to a broad range of imports into Washington state, including everyday consumer goods—such as furniture and coffee—as well as critical inputs for key industries, like bulldozers and engines.
| Product | Import Value, 2024 | Tariffs Paid, 2024 | Avg. Tariff Rate, 2024 | Potential New Tariffs | Potential New Avg. Rate |
|---|---|---|---|---|---|
| Self-propelled bulldozers | $538 million | $0 | 0.0% | $53 million | 9.9% |
| Sound media | $471 million | $0 | 0.0% | $47 million | 9.8% |
| Furniture | $540 million | $0 | 0.0% | $45 million | 8.7% |
| Coffee | $448 million | $0 | 0.0% | $44 million | 9.7% |
| Spark-ignition engines | $437 million | $89,000 | 0.0% | $43 million | 9.8% |
| All other products | $48 billion | $667 million | 1.4% | $1.5 billion | 4.4% |
Section 232 Investigations: More Tariffs on the Horizon
Semiconductors, electronics, pharmaceuticals, and lumber are currently exempt from reciprocal tariffs while under Section 232 national security investigations. However, those investigations appear likely to result in additional tariffs—meaning Washington's technology sector, healthcare supply chain, and construction industry could face further cost increases not reflected in the estimates above.
4Conclusion
Whether limited to the fentanyl-related tariffs announced in February or the maximum announced tariffs per country, the novel use of IEEPA authorities to impose tariffs could have major costs on companies in Washington. Average tariff rates could grow more than 10-fold, leading to large real cost increases even if trade volumes fall sharply as one would expect at such high tariff rates.
Importantly, these new costs do not account for new tariffs already imposed—on autos, steel, aluminum, and derivative products—or anticipated under other statutes, such as Section 232 national security tariffs on lumber, pharmaceuticals, and semiconductors. The full economic impact on Washington state exporters, ports, agriculture, and the technology sector could be substantially higher than the estimates presented here.