Tariffs — taxes imposed on imported goods — have been making headlines for years, but many business owners in Seattle still wonder: Do they actually affect me? The short answer is: if your business touches global trade in any form — directly or indirectly — tariffs could have a ripple effect on your operations, costs, and competitiveness.
With global trade policy shifting once again in 2025 and discussions about tariff extensions, pauses, or new rounds of enforcement, now’s a good time to take stock of what these changes could mean for your business and how to plan accordingly.
What Are Tariffs, and Why Do They Matter?
Tariffs are taxes placed on imports (and sometimes exports) from other countries. In the US, tariffs have been used as both an economic strategy and a negotiating tool, particularly in trade relations with countries like China, Mexico, Canada, and in EMEA.
Seattle, as a major port city with a strong international trade presence, is particularly exposed to the effects of tariffs. With the Port of Seattle being one of the busiest on the West Coast and a gateway to the Pacific Rim, changes in trade policy tend to hit home quickly — especially for industries tied to imports, exports, and international supply chains.
Which Seattle-Based Businesses Are Most Affected by Tariffs?
- Manufacturing and Aerospace Suppliers
Seattle is known for its aerospace sector — including Boeing and a broad network of manufacturers and parts suppliers. Many of these businesses rely on imported aluminum, steel, electronics, and raw materials. Tariffs on these imports can drive up production costs, affect delivery timelines, or even disrupt contracts. - Retailers and Importers
Small businesses that import goods — including furniture, apparel, electronics, or specialty products — are directly impacted by tariffs on Chinese or European goods. Many local boutiques, online sellers, and wholesale operations are seeing squeezed margins due to added import taxes. - Technology and Hardware Startups
For startups building hardware or relying on components from overseas (such as chips, sensors, or casings), tariffs can significantly increase costs or slow product rollouts. This is especially true for companies sourcing materials from China or Taiwan. - Construction and Real Estate Development
Materials like lumber, aluminum, steel, and manufactured components (like HVAC systems or appliances) often come from outside the US Tariffs on these imports can increase project costs for contractors and developers across the Greater Seattle area. - Food & Beverage Industry
Restaurants, food importers, and grocers that source specialty products from abroad — wines, cheeses, seafood, or spices — may see price increases or delays depending on ongoing tariff regulations. These costs often pass on to consumers.
What Happens If Tariffs Continue (or Resume)?
If the current pause on certain tariffs ends or if additional tariffs are introduced, local businesses may face:
- Higher costs for materials and inventory
- Supply chain disruptions
- Reduced competitiveness in pricing
- Longer lead times for production or fulfillment
For small businesses with tight margins, even a small increase in cost can be significant. Planning early can help you adapt without sacrificing growth.
What If Tariffs Stay Paused?
If tariff pauses are extended, it gives businesses temporary relief — but this shouldn’t be mistaken for permanence. Tariff policy often shifts with election cycles, international negotiations, and geopolitical events. Even if things feel calm now, it’s wise to build long-term resilience.
How to Plan Around Tariff Uncertainty
Here are some strategies Seattle business owners can use to manage potential tariff impact:
1. Diversify Your Supply Chain
Relying on a single country for materials or products is risky. Explore alternative suppliers in non-tariff regions or consider near-shoring (working with partners in Mexico or Canada).
2. Revisit Pricing Strategies
If your costs go up due to tariffs, evaluate your pricing models. Can you pass on some costs to consumers? Is bundling or subscription pricing a solution?
3. Bulk Up Inventory Strategically
If you anticipate price increases, purchasing key goods or materials ahead of tariff changes can help you lock in lower rates and minimize short-term disruptions.
4. Stay Connected with Trade News
Follow developments from the Office of the US Trade Representative (USTR), the Port of Seattle, and industry-specific trade groups. Being informed gives you time to act, rather than react.
5. Work with a CPA or Business Advisor
Tax professionals like those at Huddleston Tax CPAs can help you evaluate how tariffs are impacting your bottom line, identify tax strategies to offset rising costs, and adjust your forecasting models accordingly.
Final Thoughts
Whether tariffs are active, paused, or pending, one thing is clear: Seattle businesses that engage with global supply chains need a plan. Tariffs can feel like far-off policy decisions — until they hit your profit margins.
If your business imports goods, uses foreign-sourced materials, or relies on overseas manufacturing, now is the time to review your strategy and build a buffer against uncertainty. From rethinking sourcing to understanding deductible expenses, Huddleston Tax CPAs is here to help.
Image by Anne Schumberg from Pixabay