WASHINGTON STATE

Tariff Information and Resource Guide 

International trade policies can shift rapidly, creating both challenges and opportunities for Washington State businesses. The Washington State Department of Commerce is committed to helping local companies be nimble and competitive in domestic and global markets.

This guide outlines recent and proposed tariff actions, resources for mitigating or minimizing tariff exposure, and relevant state and federal resources that can assist businesses as they adapt their operations.

What are Tariffs?

How are Tariffs distinct from regular duties?

Action Steps and Strategies

Learn how to adapt to changing trade policy.

Webinars, Training and Support

Connect with those who can address an array of export-related topics.

Featured Resources and Events

Find the support you need through these resources and educational events.

Request One-on-One Guidance

Our Small Business Export Assistance (SBEA) team can help.

What are Tariffs?

The intent of tariffs

Most goods imported into the United States are subject to some form of customs duty. Tariffs are a specific type of duty that may be applied in addition to standard customs charges. Tariffs are imposed on imports of a specific good or goods from a specific country.

Tariffs are often imposed with the intention of protecting domestic production, responding to trade imbalances and/or addressing national security concerns. For businesses, tariffs can impact supply chains, business costs and international strategy. 

Action Steps and Strategies

The following are strategies your business can use to better understand its tariff exposure and adapt to changing global trade policy.  Along with the information provided below, download our Tariff Information and Resource Guide summary. 

Revisit supply chain and trade agreements
  • Alternate sourcing and production: Investigate whether you can source inputs from countries without new tariffs or shift certain manufacturing steps to the U.S. to reduce the share of goods exposed to additional duties.
  • Leverage international Free Trade Agreements (FTAs): The U.S. has 14 active FTAs spanning 22 countries. Determine whether shifting sourcing or production to an FTA-partner country is possible and cost-effective.
  • Take advantage of existing preference programs: Programs like the African Growth and Opportunity Act (AGOA) or the Caribbean Basin Initiative (CBI) can allow duty-free entry for qualifying goods.
  • Direct shipping: Bypassing third-party distribution centers or consolidators can reduce extra handling costs and potential tariff markups. Direct shipping also improves delivery times, lowers transit risks, and enhances the overall transparency of cross-border logistics.
  • Demand planning:  Forecasting inventory needs helps companies optimize production schedules and shipping quantities. This can minimize tariff exposure, reduce storage costs, and ensure more flexible response times to shifting market conditions or sudden policy changes.
  • Robust supply chain assessments: Regular reviews of your entire supply chain (from raw materials and manufacturing locations to logistics providers) can help identify vulnerabilities or inefficiencies. Identifying chokepoints and diversification opportunities ahead of time can help mitigate delays and tariff exposure.
Tariff Classification and Valuation Strategies
  • Tariff classification and tariff engineering: Even small, legitimate modifications to a product (if they change the product’s essential character) can shift it into a more favorable Harmonized Tariff Schedule category. For more information, read NPRs recent article, A look at some of the creative ways companies try to dodge high tariffs.
  • Correct valuation and the First Sale rule: Under First Sale, tariffs are calculated on the manufacturing cost rather than the price paid by the final buyer or trading house. This can be critical for companies subject to higher tariffs on high-value items from China or elsewhere. Ensure you have documentation proving the goods were “clearly destined” for the U.S. and the transaction was at arm’s length. Learn more from an overview of the First Sale Declaration.
Duty Deferral and Reduction
  • Foreign trade zones (FTZs): There are 11 FTZs in Washington State that allow for duty deferral until goods leave the zone for U.S. consumption.
    If products are exported directly from the FTZ, you may eliminate those duties entirely. Learn more about Foriegn Trade Zones from the U.S. Customs and Border Patrol. Learn how to prepare a request to the FTZ Board.
  • Customs bonded warehouses: Similar to FTZs, goods can be stored or lightly processed, under bond, without immediate duty payment. Duties are due only if goods enter U.S. commerce; no duties apply if they are re-exported. Learn more about the Bonded Warehouse Program from the U.S. Department of State.
Refund and Recovery Options
  • Duty drawback: If you import goods and later re-export or destroy them under customs supervision, you can claim a refund of duties, taxes and certain fees paid at importation. Learn more about Duty Drawback.
  • Post-summary corrections and protests: If you identify classification or valuation errors after an entry is filed, you may correct them, via post-summary correction (if the entry hasn’t liquidated) or protest (if within 180 days of liquidation).
Stay Engaged and Informed

Leverage industry associations

  • Trade associations often unify their members to undertake collective advocacy.
  • These organizations typically track sector-specific developments, allowing members to receive more targeted insights or guidance.
  • Trade associations can help forge shared strategies for supply chain adjustments, possible group pricing on legal support, or coordinated responses to government agencies.
  • Search the online Directory of Associations for national and state-level industry associations to connect with.

Monitor official notices

Contact federal and state representatives

  • U.S. Senators: Patty Murray, Maria Cantwell
  • House Representatives: Use this convenient Find Your Representative search tool.
  • Washington State Department of Commerce: We can help coordinate outreach and provide relevant data when you speak with legislative staff.

Webinars, Training and Support

Expert guidance is available
  • Tariff-focused seminars: In partnership with Export Finance Assistance Center of Washington (EFACW), we support topical webinars hosted by experts in their field. We are committed to continue hosting webinars on changing US and international trade changes, import/export financing, and more. If there is a topic you’d like to see, please let us know.
  • In-Person workshops and industry events: Through our broader ecosystem (e.g., U.S. Commercial Service, SBDC, etc), we can help connect you to experts who can address an array of export-related topics.
STEP export voucher program
  • Funded in-part via a grant from the U.S. Small Business Administration, the State Trade Expansion Program (STEP) allows small businesses to offset eligible export-related expenses.
  • STEP is a reimbursement grant. Companies apply for approval, incur expenses, submit required documents after completing the activity before being reimbursed.
  • Companies can receive up to $10,000 and/or three export vouchers per grant year.
Trade shows and missions
  • Inbound and outbound trade delegations can open doors to non-tariffed or lower-tariff markets, helping you minimize exposure.
  • Our network of foreign representatives often supports these delegations and facilitate introductions to vetted leads, allowing you to pivot sourcing and sales as needed.
  • These events help small businesses identify both domestic and international industry expos to meet buyers and suppliers.
  • After trade shows, missions and seminars, our specialists remain available to help you refine your global strategy.
New to exporting?
  • Despite the rapidly changing trade landscape, exporting still offers great opportunities for Washington State businesses.
  • Use our Build My Export Plan tool and reach out to our team to help you get started.
Need additional capital?
One-on-one consultation for your business
  • One-on-one consultations with SBEA international trade specialists: Our Small Business Export Assistance (SBEA) team can help your business identify optimal overseas markets, develop global business strategies, and connect your business to opportunities and events specific to your sector.
  • Overseas representatives network: Our global in-market representatives help Washington businesses connect with potential buyers/partners/distributors, gather local market insights, and explore new opportunities abroad.

Featured Resources

Events

Request One-on-One Guidance

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