1Overview

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.

2U.S.–China Trade Policy (2017–2025)

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. 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. 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.

3Washington State 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 effect, 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.

Figure 1: Washington State exports to China, 12-month rolling average (Dec 2016–Sep 2025). Exports peaked near $15B in 2018, dropped sharply through 2022, then partially recovered. Source: USTR / U.S. Census Bureau.

Recent export gains are highly concentrated. Aircraft sales are up nearly 90% compared to 2024 levels and accounted for close to 90% of Washington's exports to China in the first nine months of 2025. Other key Washington exports to China, however, are down significantly — including lumber (–95%), beef (–63%), and copper products (–88%).

Washington's role as a major port state means that broader U.S. export trends to China also have a major impact on local companies and jobs. Soybeans are a prime example: while not a major Washington crop, 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 soybean purchases in response to U.S. tariffs.

Top Washington Goods Exports to China

4Washington State Imports

Washington imports from China have been very up-and-down since 2017. While rising sharply through early 2018, they started to decline as Section 301 tariffs were imposed. The trend reversed with the onset of Covid-19 and the nationwide import boom that lasted through 2022, as money typically spent on services was redirected to goods. Washington imports from China have been trending down since 2022, with the declines accelerating as tariffs rose rapidly in early 2025.

Figure 2: Washington State imports from China with average tariff rate overlay (Dec 2016–Sep 2025). Import volumes peaked ~2022; the effective tariff rate has surged since early 2025. Source: USTR / U.S. Census Bureau.

Tariffs paid on imports from China into Washington state have risen sharply since 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. The effective tariff rate increased more than 10x — from 2.8% in 2017 to 33.2% in 2025.

Top Washington Goods Imports from China (with Tariff Data)