To better understand how Pierce County businesses would respond when faced with new tax hikes, we surveyed businesses at the beginning of April. Over 40% plan to reduce payroll in response. This means fewer jobs, fewer hours, and fewer raises for workers. Another 30% plan to increase prices, effectively passing on the costs to consumers. A handful of businesses also planned to postpone investment or even move operations out of Washington State, something we’ve seen with businesses in other communities that have implemented significant business tax increases. The proposed tax hikes could not come at a worse time for business. Not a single business said they were “very confident” with the economic stability of our region, while a whopping 83% said they were “not confident.” This highlights the economic uncertainty felt as a result of a rapidly changing economy. Additional tax hikes under these conditions are clearly the wrong answer.  When we asked businesses how the State Legislature should solve the budget shortfall, 74% said solutions should be focused on reducing services to cut spending. This compares to the 7% who felt the solution should be focused on increased taxes.  Please let your legislators know the impact of the taxes on your business before they adopt the budget. Find their contact information here.
 What are Tariffs
South Sound Voices: How Local Businesses are RespondingIn February 2025, the Tacoma-Pierce County Chamber conducted a member survey to better understand how businesses across the South Sound are being impacted by the latest round of federal tariffs. The results make it clear: uncertainty and concern are on the rise, and local employers are bracing for economic disruption. Rising Uncertainty More than half of respondents (58%) believe the South Sound is headed in the wrong direction, citing economic instability and policy concerns as key reasons. While 24% still feel optimistic, the overall tone of the responses points to a business community feeling squeezed by external pressures, especially trade. Figure 1) Do you feel that things in the South Sound are generally going in the right direction or do you feel things have gotten seriously off track?
Anticipated Impact When it comes to the anticipated impact of tariffs, three out of four respondents anticipate challenges due to new tariffs, with many sharing detailed concerns in open responses. Members reported fears of rising prices, broken supply chains, and shrinking profit margins. Small businesses worry they’ll be forced to pass costs along to customers—or absorb them at the expense of growth and survival. Some noted that even if their operations aren’t directly tied to international trade, the broader economic ripple effects—higher inflation, fewer goods, or reduced consumer spending—will still hit home. Figure 2) Do you anticipate any opportunities or challenges with the new tariffs?
What the South Sound Imports The types of goods most imported include consumer goods, intermediate components, raw materials, and food products. A few noted a high dependency on trade with Canada, China, and Mexico—countries heavily impacted by the new tariff structure. Figure 3) What types of goods or services do you import?
Strategies for Response When asked how they’re preparing to respond, nearly 40% (37%) of businesses said they’re adjusting their supply chains, while others reported diversifying suppliers (18%), negotiating pricing (22%), and reducing operations (20%). Open comments revealed a mix of strategies—some are actively raising prices, others are hoping to shift to domestic suppliers, and a few are simply “waiting and seeing.” One respondent summed it up this way: “We are raising prices just to stay in business. These tariffs won’t fix immigration or drug issues—they just make life harder for working people.” Figure 4) How are you preparing to respond to the tariffs? Please check all that apply.
Economic Interdependence About 51% of businesses said 11% or more of their revenue depends on imports or exports, highlighting how global trade is deeply interwoven into the region’s economic fabric. Figure 5) What percentage of your revenue is directly connected to your ability to import or export goods and services?
The Organizations Served The majority of businesses who responded serve either businesses (33%) or consumers (43%), with a number working with government (2%) or wholesale clients (4%). Figure 6) Who are your primary customers?
Small Business, Big Impact Most of the businesses represented in this survey are small: 45% have 1–5 employees, and another 30% have fewer than 50. These are the businesses that form the economic backbone of the South Sound—and the ones most vulnerable to disruptive policies and the kinds that keep our community vibrant, diverse, and resilient. Figure 7) How many employees does your company have?
“Members of our organization and the broader trade community are facing significant challenges in today’s rapidly shifting global trade environment,” said Michael Fowler, Executive Director of the World Trade Center Tacoma. “At WTC Tacoma, we remain committed to supporting our members and the community by actively collaborating with our partners to provide timely updates and actionable insights. Our goal is to help businesses navigate the evolving tariff landscape." South Sound businesses are asking for stability, predictability, and a seat at the trade table. They’re adapting as best they can, but the Chamber’s role as an advocate for clear, business-friendly policy is more important than ever. "We advocate so you can operate." “We know our local businesses are already navigating enough challenges—rising costs, workforce pressures, and ongoing recovery. New and shifting tariffs add another layer of uncertainty, and we want our members to know they’re not alone,” said Andrea H. Reay, President & CEO, Tacoma-Pierce County Chamber. “The Chamber is here to help you plan, access resources, and advocate on your behalf at every level. When policy changes impact Main Street, we respond with action and support. We advocate so you can operate.” What's Changing: Federal Trade Policy and Tariff ExpansionThis month the White House announced its comprehensive tariff policy -- with a baseline tariff of 10% on almost all imports -- and new reciprocal tariffs. Goods from China, by far the biggest target, are now subject to at least a 104% tariff. Trump tacked on higher tariffs than initially announced after Beijing didn’t back off its promise to impose 34% retaliatory tariffs. The reciprocal rates were calculated by dividing a country’s trade deficit with the US by its exports to the country and multiplying by half. They range from 11% to 50%, and barring Mexico and Canada, America’s other top trading partners were not spared. The EU was hit with a 20% reciprocal tariff, China at 34%, Japan at 24%, Vietnam at 46% and South Korea at 25%. Though the executive branch announced it was pausing higher targeted tariffs for 90 days, our Chamber understands this creates greater uncertainty for businesses.
But the recent surge in tariffs introduces serious challenges for businesses of all sizes. With baseline import duties at 10%, reaching as high as a 125% tariff on Chinese goods in recent weeks, and a 20%+ tariff on products from the European Union, the cost of doing business is rising, retaliatory tariffs are mounting, and market volatility is on the rise. From the U.S. Chamber of Commerce: Pro-Growth Trade Policy In alignment with the U.S. Chamber of Commerce, the Tacoma-Pierce County Chamber prioritizes the goal of achieving at least 3% economic growth annually and cementing in place policies that will support faster economic growth over the long term. “What we have heard from business of all sizes, across all industries, from around the country is that these broad tariffs are a tax increase that will raise prices for American consumers and hurt the economy,” said Neil Bradley, Chief Policy Officer at the U.S. Chamber of Commerce. “We urge policymakers to instead focus efforts on accelerating the pro-growth agenda of extending our current tax policy, re-balancing regulations, and unleashing the full potential of American energy – all policies that will grow the economy and create more opportunities for Americans. In addition, the U.S. should begin negotiating new trade agreements to open up more markets for businesses and workers which will support more American jobs and lower prices.” Read recent background information on reciprocal tariffs from the U.S. Chamber of Commerce. What You Can Do: Six Steps to Build ResilienceUnderstanding the complexities of these trade policies is crucial for local businesses to navigate the current landscape effectively. The Chamber is committed to providing professional resources and support during these uncertain times. Here are some actionable steps to consider so that your organization can plan, prepare, and protect its interests. 1. Conduct a Comprehensive Inventory Analysis Don’t just count your inventory, analyze it. Categorize items by origin (domestic vs. international), usage rate, and reorder frequency. Pay special attention to anything sourced from countries affected by new tariffs. A clear picture of what you have and where it comes from is your first line of defense. 2. Buy Smart and Buy Ahead. If you have the cash flow and storage capacity, stock up on high-use items before tariff-impacted pricing hits your suppliers. Buying from existing “pre-tariff” inventory now can help you avoid significant cost spikes in the near future. 3. Rethink Your Supply Chain Now’s the time to shop around. Source domestic suppliers or pivot to countries with fewer trade penalties. Diversify your vendor list to reduce dependency on any one country or region. Building redundancy into your supply chain can be a game-changer in uncertain times. 4. Financial Forecast with Intention Use projected tariff impacts to model future costs. Look six months ahead. Compare your forecasted input costs to your current pricing. If you’re not adjusting now, you may be absorbing costs that could jeopardize your margins later. Make data-driven decisions and stay nimble as conditions evolve. 5. Be Transparent with Customers Consider communicating with customers about your changes proactively because it makes a difference. Customers appreciate honesty, especially when you explain how trade shifts are driving prices or product adjustments. Candid, values-driven messaging can deepen loyalty in times of transition. 6. Lean on The Chamber and Your Network You’re not in this alone. Connect with other local business leaders and Chamber staff. We can help you troubleshoot, source alternative vendors, identify funding opportunities, and connect to state and federal resources. If your business is in crisis, reach out because we are here to help. We Champion Local Business Always We are more than a resource; we are your advocate. We’re actively monitoring trade policies, speaking up for the interests of small businesses, and pushing for solutions that strengthen our local economy. This is a time for planning, partnership, and persistence and we are with you every step of the way.  Stephanie Housden dreamt of opening Sober AF Zero Proof Bottle Shop for a long time, and her dream came true on April 4, 2025. The Chamber was able to celebrate the soft opening on April 3, 2025, with a ribbon cutting and the doors opened to the tasting room on April 4, 2025. Walking into Sober AF is like stepping back into the ‘90s with a rainbow of neon colors, funky prints, quirky furniture, and a Lisa Frank-esque jaguar mascot named ‘Mischievous’ painted on the wall. Owner Stephanie Housden said the interior was inspired by her teenage self's bedroom, and she loves how it turned out. Sober AF offers a wide variety of beverages, “with a more expansive selection than your local grocery store or a liquor store” Housden shared. The Chamber’s Board of Directors Chairwoman Kierra Phifer shared, “[Stephanie] is right; this is way better than the one endcap [of Non-Alcoholic beverages] at Total Wine and More.” Phifer herself is six-years sober and was appreciative of Sober AF’s opening. The overarching message from Sober AF is that ‘no alcohol doesn’t mean no fun’. Each speaker at the ceremony touched on that point as well. It is open for anyone who is sober, sober curious, or just wants to take a night off from drinking. A perfect place for expecting mothers, athletes, those in recovery, and more. Austin Miller with Theory Real Estate spoke about the building – the first piece of property Theory owned on South Tacoma Way. He was overjoyed that his friends [the Housdens] chose this location to open Sober AF. Tacoma City Councilmembers Diaz and Scott shared their delight for Sober AF; both congratulating Housden for investing in this area of Pierce County and adding a new element to the f South Tacoma business area. After the actual cutting of the ribbon, Housden poured some bubbly (non-alcoholic, of course!) for folks to toast and wish Sober AF a long and happy journey. Please join us in extending that wish and be sure to stop by Sober AF if you want to have a fun night without the negative consequences attached. If you want to learn more about Sober AF Zero Proof Bottle Shop, you can follow it on social media platforms: Facebook, Instagram, and TikTok. The tasting room is located at 5222 S Tacoma Way Tacoma WA, 98409.
Chamber Board Chairwoman, Kierra Phifer, kicked the celebration off with a brief introduction before attendees heard from CEO & Founder of King’s Dream Business Consulting, Jawan Harris. Harris reflected on the initial demand of King’s Dream being sourced from its online presence, having only been founded a year before the COVID-19 pandemic. Many – if not all – small business owners needed the support and steadfast help that Harris and his team provides. Since it proved to be a necessity online, Harris knew that a physical location was the next milestone for King’s Dream. Mayor Woodards reminded guests of how important it is for businesses to help other businesses, like King’s Dream, but especially in today’s climate because businesses are finding themselves stuck between a rock and hard place. “I didn’t mean for this to turn so serious, when we’re supposed to be celebrating this grand opening, but I feel compelled to make sure you [Jawan] know just how important the work you are doing is,” said the Mayor. After meaningful messages had been delivered, the ribbon was cut, and attendees were invited to sign the the ribbon and create a future momento for the business. The Chamber was very grateful to be a part of this celebration for King’s Dream Business Consulting. Please join us in welcoming King’s Dream to downtown Tacoma! If you want to learn more about King’s Dream Business Consulting you can follow it on social media platforms: Facebook, Instagram, LinkedIn, YouTube, and TikTok. The headquarters is located at 702 Broadway Tacoma, WA 98402.  Welcome to the new members who joined our business community in March 2025:
|
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
November 2025
Categories
All
|
RSS Feed
