PRESS RELEASE  ·  JUNE 25, 2026

New WCIT Analysis: USMCA Helps Support Washington’s Economy

Trade with Canada and Mexico supports 320,000 Washington jobs and nearly $11 billion in exports; report finds the agreement saved state businesses an estimated $126 million in direct tariff costs over the past year.

SEATTLE — As the U.S., Canada, and Mexico formally review the U.S.-Mexico-Canada Trade Agreement, WCIT released a new analysis, The Importance of the US-Mexico-Canada Agreement for Washington State, documenting how deeply Washington’s economy depends on the USMCA and how the agreement has cushioned the state to some extent from Trump’s tariffs. The report arrives as the agreement enters its statutory six-year review.

Together, Canada and Mexico account for roughly 20% of Washington’s goods exports and one-third of its goods imports, and trade with the two partners supports about 320,000 Washington jobs. From April 2025 to March 2026, Washington businesses shipped $7.3 billion in goods to Canada and $3.7 billion to Mexico — nearly $11 billion combined — including $2.4 billion in exports where the two markets account for at least 90% of all sales abroad, such as video game consoles, electrical energy, and tractors.

The analysis finds the USMCA has become even more valuable as new tariffs have taken effect. Over the past year, the agreement saved Washington importers an estimated $126 million in direct tariff costs and far more by exempting USMCA-compliant goods from steep IEEPA tariffs of up to 25% on Mexico and 35% on Canada. As those tariffs hit, USMCA-claiming imports rose sharply even as overall imports fell — evidence that businesses leaned on the agreement to keep North American supply chains intact.

At the same time, the report shows Washington’s trade ties cannot be taken for granted. Exports to Mexico fell 21% year-over-year and exports to Canada slipped 1.5%, with sharp declines in construction equipment, tractors, biodiesel, and auto parts as Section 232 tariffs disrupted integrated supply chains. WCIT warns that overly strict rules of origin in the review could make it harder for exporters to qualify for USMCA benefits and undercut the very trade the agreement is meant to protect.

“This report illustrates how critical the United States–Mexico–Canada Agreement (USMCA) is to the state of Washington’s economy across agriculture, manufacturing, technology, and natural resource industries, including the 320,000 jobs supported by trade with our partners. The Trump Administration must engage in good faith with both Canada and Mexico in order to quickly review and renew the USMCA while maintaining its strong labor and digital trade provisions. Washington’s manufacturers, farmers, and consumers need the certainty that USMCA renewal would bring to spur future investment, jobs, and local exports.”

Senator Maria Cantwell — D-Wash.

“With 320,000 jobs and roughly $11 billion in exports riding on these two markets, Washington has much to lose if the USMCA is weakened or allowed to lapse. Our message to negotiators is simple: continue the agreement, safeguard its tariff exemptions, and do no harm to the integrated supply chains that keep so many of Washington’s manufacturers, farmers, ranchers, and technology companies competitive.”

Lori Otto Punke — President, WCIT

Washington’s reliance runs in both directions. The state imported $15.2 billion in goods from Canada and $1.5 billion from Mexico over the same period, and depends on its neighbors for products with few alternatives, including crude oil, petroleum gases, and live cattle from Canada, and avocados, gypsum, and citrus from Mexico. Pending Section 232 investigations threaten tariffs on billions more in imports, including $8.2 billion on the critical minerals list.

WCIT championed the USMCA as the successor to NAFTA and is urging federal negotiators to preserve the agreement and its tariff protections through the review. The full report is available at wcit.org. WCIT is also releasing reports on the impacts for Oregon and Idaho.