Washington is among the most trade-dependent states in the nation, with more than $58 billion in exports in 2024 and 40% of jobs tied to trade. According to the governor’s office, new and retaliatory tariffs could cost the state’s agriculture sector $7.5 billion, with significant hits expected to apples, cherries, potatoes, wheat and dairy. 

Of the 444 respondents to the Association of Washington Business’ quarterly survey of employers, 44% say they expect the state to enter a recession in the next year. That’s up from 17% in the prior survey. 

An economic development effort that has pumped tens of millions of dollars into the Tri-City economy for more than 30 years is changing how it does business due to a past legal dispute with a prospective recipient of one of its loans.

The governor presented $4 billion in new reductions at the end of February and said he supports another $3 billion in savings former Gov. Jay Inslee proposed in December. This scrub is Ferguson’s first step in addressing an operating budget deficit that Democratic lawmakers say is roughly $12 billion over the next four years. Ferguson pegged the number higher, at $15 billion. 

Employers across the state are less in the doldrums about what 2025 could have in store for the economy, but rising costs and looming tariffs still have them on edge.

Governor-elect Bob Ferguson recently announced the appointment to lead the agency, which manages a budget of $7.9 billion and administers more than 100 programs in the areas of housing, energy, community and economic development, local government and business services.

As a new year approaches, the region’s economy appears to be holding steady, with a bit of a slowdown typical for the winter season. 

The economic development that’s been synonymous with the Tri-Cities in recent years is primed to continue, experts say.

Despite the worst of the health crisis having passed, one of its enduring legacies is the sharp rise in labor costs.

The latest economic data for the greater Tri-Cities yields a mixed bag of progress and slowdown.