China remains one of Washington state’s most important, and most complex, trading partners. In 2024, China was Washington companies’ second largest goods export market ($6.7 billion) and import source ($11 billion), in both cases trailing only Canada. The close ties continue even though trade relations have shifted dramatically due to escalating tariffs, retaliatory measures, and shifting political priorities over the past decade and especially this year. From January to September 2025, China was Washington’s top export market and remained its second largest import source.
In 2017, President Trump launched the first Section 301 investigation into China’s trade practices. Since then, trade actions toward China have spanned multiple administrations, as both the first and second Trump administrations and the Biden administration have used high tariffs and trade measures against China. In 2025, executive tariffs have been greatly expanded under the authority of the International Emergency Economic Powers Act (IEEPA) and Section 232 tariffs, and presidential trade action on China shows no sign of slowing down.
For Washington state, whose economy depends heavily on global trade, port services, and export-oriented industries, these policy changes have carried major consequences. From rising import costs to fluctuating export volumes, Washington businesses have faced ongoing challenges navigating uncertainty in U.S.–China economic relations.
United States Trade Policy and China
The first Trump administration marked a turning point in U.S.–China trade relations. In 2017, the Office of the United States Trade Representative (USTR) launched a Section 301 investigation into China’s trade practices, finding widespread violations related to intellectual property and forced technology transfer. Following this investigation, the United States imposed sweeping Section 301 tariffs beginning in 2018, raising average tariffs on Chinese imports from 2.9% in 2017 to 9.1% by 2019.
The Phase One Trade Agreement, signed in January 2020, represented a partial de-escalation of tensions. While the Biden administration removed tariffs on certain other trade partners (e.g., the EU), it maintained and even raised the China Section 301 tariffs. In addition, new investigations and targeted trade adjustments continued, reflecting bipartisan skepticism toward China’s trade practices.
When President Trump returned to office in January 2025, he intensified these measures. Citing China’s role in the production and export of fentanyl, the administration invoked IEEPA in February 2025 to impose a 10% tariff on all Chinese imports. The tariff rate was raised to 20% in March and later stacked with a 34% global IEEPA tariff announced in April. There have been tariff escalations and de-escalations in subsequent months over several issues, including a China announcement on export controls of critical minerals, until a seeming détente when Presidents Trump and Xi met in November 2025.
Negotiations led to a partial rollback in November—reducing fentanyl-based tariffs from 20% to 10%, extending Section 301 tariff exclusions, and suspending new actions related to China’s shipbuilding and logistics sectors. However, a new Section 301 investigation into China’s compliance with the Phase One Agreement remains ongoing, which could lead again to higher tariffs.
Overall, the cumulative effect of these actions has been profound. Since 2018, 77% of tariffs paid on Chinese imports were the result of presidential actions. Between January and September 2025, 91% of tariffs paid were due to executive action and the average tariff rate on Chinese imports reached 31.8%. U.S. exports to China have simultaneously declined and are down 9% in early 2025 compared to the same period in 2017.
Impacts for Washington State
China remains an important trading partner for Washington state. As noted, Washington exported $6.7 billion worth of goods to China in 2024 and imported $11 billion in goods from China. Yet these figures are historically low. While Washington’s goods exports to China have begun to rebound after years of decline – 2025 exports are up over 40% from 2024 levels – exports are still about 15% below their 2017 peak. Similarly, imports from China have fallen 49% since 2017. While the value of imports has declined, the tariffs paid by Washington businesses has soared—reaching $1.7 billion in the first nine months of 2025, with 90% of those costs driven by presidential actions.
Exports
Washington’s exports to China were increasing prior to the Section 301 tariffs imposed in 2018.Yet after the tariffs and retaliatory measures took effects, Washington’s exports to China plummeted and remained depressed for years. Only in mid-2024 did exports start to rise again. From January to September 2025, Washington businesses exported $8.0 billion in goods to China—a 43% increase over 2024, though still 16% below 2017 levels.
From January to September 2025, top exports to China include aircrafts and engines, hay and foraged products, crustaceans, and fresh beef.
| Product | Exports (Jan.-Sep. 2017) | Exports (Jan.-Sep. 2021) | Exports (Jan.-Sep. 2025) |
|---|---|---|---|
| Aircrafts, engines & parts | $7.2B | $167M | $7.0B |
| Medical equipment | $212M | $337M | $114M |
| Hay & foraged products | $72M | $118M | $58M |
| Crustaceans | $32M | $44M | $39M |
| Fresh beef | $73,000 | $5.8M | $35M |
| All other exports | $2.1B | $1.5B | $749M |
| Total exports | $9.6B | $2.1B | $8.0B |
Given its large port infrastructure, broader U.S. export trends to China also have a major impact on Washington companies and jobs. Soybeans are a textbook example. While not a major export crop for Washington farmers, over $900 million worth of soybeans were exported out of the Seattle Port District from January to September 2017. In 2025, it was just $58 million – nearly all in January – as China largely stopped purchases of soybeans in response to U.S. tariffs.
Imports
Washington imports from China have been very up-and-down since 2017. While rising sharply over 2017 and early 2018, they started to decline as more Section 301 tariffs were imposed. The trend reverse with the onset of Covid-19 and the nationwide import boom that occurred through 2022 despite high tariffs, as money typically spent on services was redirected to goods purchases. Washington imports from China have been trending down since 2022, with the declines accelerating as tariffs started rising rapidly in early 2025.
Tariffs paid on imports from China into Washington state have risen sharply since 2017, though imports were only about half as much from January to September 2025 compared to the same period in 2017. Since 2018, Washington importers have paid $11 billion in tariffs on Chinese goods—$7.8 billion (73%) of which resulted from executive action. In the first nine months of 2025 alone, importers paid $1.7 billion in tariffs, 90% of which stemmed from presidential authority. Tariffs on Washington imports from China averaged about 25% for the year ending in September 2025 (even though higher tariffs were only in effect for about half of that time).
Top imports from China include toys, seats and parts, exercise equipment, video game consoles, and furniture—all consumer goods facing elevated tariff rates. Despite declining import volumes, the effective tariff rate increased over 10x from 2.8% in 2017 to 33.2% in 2025.
| Product | Jan.-Sep. 2017 | Jan.-Sep. 2021 | Jan.-Sep. 2025 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Imports | Tariffs | Avg. Tariff | Imports | Tariffs | Avg. Tariff | Imports | Tariffs | Avg. Tariff | |
| Toys | $340M | $0 | 0.0% | $1.1B | $0 | 0.0% | $306M | $52M | 17.1% |
| Seats & parts | $197M | $0 | 0.0% | $390M | $65M | 16.7% | $174M | $49M | 28.0% |
| Exercise equipment | $84M | $2.2M | 2.6% | $287M | $29M | 10.2% | $145M | $44M | 30.3% |
| Video game consoles | $1.1B | $0 | 0.0% | $1.0B | $1.1M | 0.1% | $140M | $43M | 30.3% |
| Furniture | $149M | $0 | 0.0% | $237M | $58M | 23.4% | $123M | $58M | 46.0% |
| All other imports | $8.0B | $280M | 3.5% | $6.8B | $1.0B | 15.3% | $4.2B | $1.4B | 34.4% |
| Total imports | $9.0B | $282M | 2.8% | $9.8B | $1.2B | 12.2% | $5.1B | $1.7B | 33.2% |
While U.S. tariffs have had the intended effect of reducing imports, it is notable that China has weaponized its dominance of key industries such as magnets and critical minerals. Perhaps ironically, threatening to block certain Chinese exports to the United States has provided China with as much leverage in negotiations as its refusal to purchase soybeans, since the U.S. government cannot compensate producers missing critical components in the same way it can provide a financial bailout to farmers.
Conclusion
The evolution of U.S.–China trade policy since 2017 has reshaped Washington state’s trade relationship with China. While China remains a top-2 market for Washington’s exports and imports, the export recovery has hinged on aircraft sales, and many other sectors have seen sharp declines. At the same time, escalating tariffs and political uncertainty have reduced imports, raised costs for local businesses and consumers, and strained supply chains, including for many exporters.
The current trade truce provides little long-term certainty. New tariffs could be imposed by either side at any time, and both countries have shown a willingness to escalate sharply and rapidly, if only for perceived negotiating leverage. Navigating this important but rocky bilateral trade relationship will remain a top challenge for Washington companies for the foreseeable future.
