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Many people have supported tariffs to raise federal revenue and to pressure foreign leaders. However, any enthusiasm for increased tariffs must be tempered by the economic reality that for us in Eastern Washington, tariffs mean trouble.

President Reagan stated, “The freedom to trade is not a new issue for America. In 1776 our Founding Fathers signed the Declaration of Independence, charging the British with a number of offenses, among them, and I quote, ‘cutting off our trade with all parts of the world.’ ”

A tariff is a tax imposed by the U.S. government on imported goods. When American businesses purchase foreign products subject to tariffs, they must pay an additional fee to the U.S. Treasury. While tariffs are often framed as penalties on foreign competitors, the economic reality is that they are taxes paid by American businesses and often passed down to consumers in the form of higher prices.

The primary intent of tariffs might be to make foreign goods less competitive against American-made products. A steep tariff on Chilean wine, for example, might push consumers toward Walla Walla wines. However, the global economy does not operate in isolation. Countries hit with U.S. tariffs frequently impose retaliatory tariffs on American exports, making them less competitive abroad.

China has already reacted and imposed a 25% tariff on many agricultural products from the U.S. Eastern Washington’s wheat growers are very exposed to international markets. Roughly 90% of Washington’s wheat is exported, primarily to Asia, including the Philippines, Japan, South Korea and China. The price of Washington’s soft white wheat – crucial for making noodles – will likely drop due to declining competitiveness in global markets: greater supply than demand pushes down prices.

We are working to ensure House Agriculture Committee Chairman G.T. Thompson and Ways and Means Chairman Jason Smith are fully aware of the impact retaliatory tariffs can have on Eastern Washington businesses, farmers and consumers.

The modern system of global free trade took shape after World War II, with the U.S. leading the charge. Nations that remained outside the global free trade system – including the Soviet Union – lagged behind economically, with outdated products and inefficient agricultural methods.

Both Democratic and Republican administrations have pursued trade agreements to bolster economic ties with key partners.

At Schweitzer Engineering Laboratories in Pullman, free trade plays a vital role. The company designs and produces high-tech digital protection and automation equipment for power grids. Its manufacturing process relies on an integrated North American and global supply and demand chain:

• Panels are produced at SEL facilities in Mexico and Brazil, as well as at several locations in the United States.

• Advanced electronic instruments and systems are designed and manufactured in the U.S. using domestic and imported devices.

• The final products are exported globally, including to Canada and Mexico. Products are in over 170 countries today.

SEL exemplifies the trade interdependence fostered under the United States-Mexico-Canada Agreement. Tariffs disrupt supply and demand, increasing costs at each stage of production and making U.S. companies less competitive against European and Asian manufacturers. The tariffs are a gift to foreign competitors, as counter tariffs kick in.

Tariffs challenge the strong technical and business relationships SEL has established with utilities and industry in Canada and Mexico.

That’s a waste of capital overall but may make more sense than losing the business to foreign competition. It’s also “offshoring,” being forced by very high tariffs and counter-tariffs.

Tariffs unfortunately encourage special interests to lobby Congress and the Executive branch for exceptions, which further erode our economic and political freedom.

Eastern Washington will suffer from these tariffs, hurting manufacturers and farmers who, like SEL, want a fair, free, flat and open playing field and stable international relations to prosper.

Tariffs are taxes. These taxes will hit trade-dependent states like Washington especially hard. Free trade floats all boats and is essential to our economic and political freedom.

In time, we believe common sense will prevail.

Finally, in Winston Churchill’s words, “You Americans always do the right thing after you try everything else.”

Michael Baumgartner represents Washington’s 5th Congressional District in the U.S. House of Representatives. Edmund O. Schweitzer III is founder and chairman of the board of Schweitzer Engineering Laboratories.

This op-ed was published in the March 5, 2025 issue of The Spokesman Review. Used with permission of the Spokesman Review ©2025.