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retaliatory tariffs to have a chilling effect on our business, especially China,” he said.
Other Washington manufacturers are also feeling the sting.
“ These tariffs will make acquiring critical materials even more of a challenge,” while injecting new uncertainty into business planning, said Steven Hallman, operations and purchasing manager for Wohler Retrotec, a manufacturer of building diagnostic tools based in Everson, north of Bellingham.
The company has looked— unsuccessfully— for U. S.-based manufacturers that can supply certain components. The tariffs will lead to higher prices for finished products that rely on parts only available overseas,“ as we have to pass along the 25 % increase in costs or absorb it, when margins are already dwindling,” Hallman said.
In some instances, the business has even discussed moving manufacturing outside the U. S.
As employers navigate the shifts in tariff policy, they’ re using up resources that could otherwise be used for expanding business operations.“ The constantly shifting story makes it hard to make any plans,” Bluechel said.
One Washington recreational facility said most of the equipment it needs for its customers is manufactured overseas. They have stockpiled six to nine months of foreign-made items ahead of tariffs, but they are looking at a loss of customers and the potential need to cut staff if tariffs continue on the foreign items they can’ t source domestically.
“ Tariffs will significantly increase the prices of most of these items,” said the company’ s owner.“ We will need to pass these cost increases on to our customers. We expect these price increases to reduce our total sales,” leading to a potential reduction in payroll.
In an interview with KUOW in April, Washington state chief economist Dave Reich said from a business perspective, it makes sense to delay important decisions, investments and hiring when“ you don’ t know what the future’ s going to look like.”
AWB’ s employer survey data bears that out. In response to tariffs, 35 % of businesses are delaying planned capital expenditures, 32 % are absorbing higher costs, and 20 % are searching for domestic suppliers. Nineteen percent are delaying hiring and 11 % are making plans to lay off staff.
Michelle Parkinson, with Carstens, said she has contacted Washington’ s congressional representatives to ask what steps are being taken to protect small businesses.“ The loss of businesses and jobs as a result of these tariffs will be detrimental to all Washingtonians,” she said.
Top photo: Access Laser, an Everett company that makes high-tech CO2 lasers and exports more than 96 % of its products overseas, is facing impacts from new tariffs. Bottom Photo: Specialized CO2 lasers manufactured by Access Laser of Everett.
“ Overall increased costs will hurt our profitability and make us less competitive as a direct result of the tariffs.”
— Gordon Bluechel, CEO of Access Laser, an Everett manufacturer of CO2 lasers
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