Everett businesses that depend on Canadian imports for construction materials, consumer goods, and aerospace parts face steep new costs after President Trump signed proclamations July 20, imposing an additional 50% tariff on a broad range of Canadian products.

The tariffs take effect August 19, giving local contractors, retailers, and port operators a 30-day window to renegotiate contracts and adjust supply chains.

What's covered

The tariffs, authorized under Section 338 of the Tariff Act of 1930, target Canadian motor vehicles, alcoholic beverages, and dairy products. But the product list extends well beyond those categories: cement, clothing, furniture, car parts, technology items, and other construction and consumer goods all face the 50% surcharge. Energy products, potash, fish, and critical minerals are excluded.

The new rate applies even to Canadian goods that previously qualified for preferential treatment under the U.S.-Mexico-Canada Agreement. A 25% tariff on non-USMCA Canadian goods was already in place before Monday's announcement.

Port of Everett entered this round already weakened

The Port of Everett, which derives roughly 60% of its revenue from international seaport operations, absorbed significant losses from earlier tariff rounds before Monday's escalation. CEO Lisa Lefeber told attendees at the port's annual Port Report event on July 14 that existing tariffs caused at least a 10% drop in cargo revenue. In the first half of 2025, cargo revenue fell to $13.4 million from $15.3 million during the same period in 2024.

Those figures reflect the impact of the existing 25% tariff on non-USMCA goods. The new 50% rate announced Monday has not yet taken effect.

Cargo volume declined by another 10% heading into the third quarter of 2025, Lefeber said. The port cut its overall 2025 budget by 10% in anticipation of further impacts.

The port ranks as Washington state's No. 2 export customs district and No. 5 on the West Coast, supporting nearly $21 billion in annual U.S. exports and more than 40,000 regional jobs. The port's own economic impact reports estimate more than 60% of Snohomish County jobs are tied to trade.

Construction materials on the tariff list

Cement and construction materials are among the tariffed categories. That is relevant to Everett's Waterfront Place development, a 65-acre mixed-use project where the Port of Everett had facilitated more than $350 million in public and private investment as of late 2025, according to port records. The project is projected to create 2,100 jobs at full buildout, according to port estimates.

Boeing's new $1 billion North Line 737 MAX production facility, which launched July 10 with 1,000 staff in training, adds another dimension. The North Line's first customer is WestJet, a Canadian airline. Canadian Prime Minister Mark Carney said on X on July 20, that Canada would "take any measures necessary" to support Canadian workers and businesses, though he did not specify what form countermeasures would take.

Statewide trade ties

Washington state exports roughly $7 billion in goods to Canada annually and imports about $15 billion, according to state trade data. Canada is the state's largest source of imports and a top export market.

The tariffs take effect August 19. The Port of Everett has not yet issued a public response to Monday's announcement.