| April 24, 2025
It seems that at every level of government, decisions are having a direct impact on our local business community. Consumer confidence is faltering—and based on conversations with many of you, business and economic confidence may be even more fragile.
Tariffs and Cross Border Business
The elephant in the room remains the ongoing trade tensions: the on-again, off-again tariffs and, most significantly for our region, the sharp decline in cross-border shopping and travel. Some of our hardest-hit sectors are reporting drops in activity of 40–50%.
Here’s how we’re responding:
- Monthly meetings of our Cross Border Advisory Council
- Ongoing communication with regional media and all levels of government
- A forthcoming survey, in partnership with WWU’s Border Policy Research Institute, to assess the local impact of tariffs and reduced cross-border activity
State Tax Increases
As the legislative session comes to a close, state lawmakers are finalizing the next two-year budget—and the outlook for business is concerning. Proposed increases to B&O taxes and possible property tax hikes are on the table.
It’s telling that even the Governor has expressed concerns about the size of the budget and the potential tax burden. While we all agree on the importance of adequately funding critical public services, there’s a growing sense that the proposed spending levels may outpace what our economy—particularly a trade-dependent region like ours—can afford during this time of uncertainty.
Minimum Wage Bump
In less than a week, minimum wages in the City of Bellingham will rise by $1.00/hour, bringing the base rate to $18.66/hour. All employees earning below that threshold will need to be adjusted accordingly—including new hires.
Two tough realities:
- This increase will likely lead to further wage compression, affecting most employees earning under $40/hour.
- Competitive pressure may force wage adjustments beyond Bellingham city limits as well.
These changes are driving up operating costs and disrupting industries across the board. While wages aren’t the only factor, they remain one of the largest expenses for many businesses. Anecdotally, we’ve seen more closures lately—with many owners citing unsustainable increases in the cost of doing business.
A small silver lining: With fewer job openings and a slight rise in unemployment, wage compression may be less severe than expected.
Let’s all hope for better news in next month’s update—and keep supporting one another as we navigate these challenges together.
-Guy |
