Tariffs work like a tax on the things Washingtonians buy. Businesses pay them first, then pass the cost along through higher prices or cuts in operations. Washingtonians end up spending more but getting less, while many workers see incomes fall and opportunities shrink. These findings come from OFM’s economic model, which assumes the “Liberation Day” tariffs stay in place over the next four years.

By the numbers (How much will prices increase?)

• Used cars up to 25% over two years and new cars up 6% to 8%
• Groceries up about 1% to 2% per quarter through 2026
• Clothing and footwear up about 2% through 2026, slipping below 1% per quarter by 2028
• Canadian natural gas peaking at 14.6% in October 2025, and electricity up 8.9% in January 2026
• Washingtonians lose about $1.34 billion in salaries by 2029

Many goods that Washingtonians depend on — like utilities, groceries, clothing, home furnishings, and vehicles — will become more expensive as result of increased tariffs. This is in addition to any inflation these goods would normally experience. At the same time, some services — like nonurgent health care and hospitality — will see deflationary pressure. But that isn’t because tariffs make them cheaper. It’s because high tariffs will slow economic activity, lower demand for certain products and services, and force families to shift their spending as other necessities become more expensive.

Learn more about how tariffs threaten to raise prices, disrupt critical state industries, and eliminate jobs in Crosswinds Ahead: The Turbulent Tariff Toll on Washingtonians from the Washinton State Office of Financial Management.