WCIT Statement on New 50% Tariffs on Canadian Goods

The Northwest’s closest trading partner — and the trade supporting more than 560,000 jobs across Washington, Oregon, and Idaho — is in the crosshairs as duties are imposed without the USMCA protections that have shielded the region until now.

For Immediate Release

SEATTLE — WCIT reacted to the Trump Administration’s decision to impose a 50% tariff on a wide range of Canadian goods under Section 338 of the Tariff Act of 1930. Unlike previous rounds of tariffs, the new duties — set to take effect in 30 days — would apply without the USMCA exemption that has, until now, shielded most North American trade. WCIT President Lori Otto Punke issued the following statement:

“Canada is not a rival to be worn down — it is the Northwest’s closest economic partner and one of our largest trading relationships. Trade with Canada and Mexico supports roughly 560,000 jobs in our region and nearly $11 billion in annual exports. A 50% tariff on Canadian goods, imposed without the USMCA protections that have kept North American supply chains intact, would raise costs for Northwest families and employers and invite the kind of retaliation our exporters can least afford.

“Even under the tariffs already in place, our exports to Canada have slipped and American wine sales to Canada — a direct concern for Washington state, the nation’s second-largest wine producer — have fallen by roughly 80%. The furniture, paper, cement, and dairy now being targeted are woven into supply chains and onto store shelves on both sides of the border. Escalation does not bring those jobs home; it puts more of them at risk.

“We are especially concerned that these tariffs discard the USMCA carve-out that both countries negotiated in good faith. That exemption is the single most important reason Northwest businesses have been able to weather the past year. Setting it aside under an untested statute written during the Great Depression injects exactly the uncertainty that freezes investment and hiring across our state.

“WCIT urges the administration to step back from broad tariffs and return to the negotiating table. Canada has said it stands ready to engage; so should we. The path to a fairer trading relationship runs through the USMCA review, not around it. Our message to negotiators on both sides is to continue the agreement, safeguard its tariff exemptions, and do no harm to the integrated supply chains that keep the Northwest’s farmers, manufacturers, and technology companies competitive across North America.”

The Northwest’s stake in the Canada relationship

Canada is one of the Northwest’s most important markets and suppliers. In the year ending March 2026, businesses across Washington, Oregon, and Idaho shipped more than $11 billion in goods to Canada alone — $7.3 billion from Washington, $2.3 billion from Oregon, and $1.6 billion from Idaho — and the region imported billions more in products with few ready alternatives. Trade with Canada and Mexico supports an estimated 320,000 jobs in Washington, 170,000 in Oregon, and 75,000 in Idaho. Read our full reports.

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