Newsletter — April 10, 2025 | | |
POLICY
ECONOMY
ON THE LOCAL FRONT
POLITICAL
RETAIL THEFT & PUBLIC SAFETY
IN THE NEWS
TRENDS
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What we are tracking — WR Legislative Hot List
WR is closely monitoring the bills that have advanced through the legislative process. Each week, we’ll spotlight our weekly “hot list” key legislation that could have the most significant impact on WR members.
Concerning property tax reform (SB 5798/HB 2049)
The House and Senate propose changes to the state and local property tax growth limits. The current 1% annual cap would be replaced with a formula based on inflation plus population growth.
- The Senate proposal removes the cap entirely.
- The House version increases the cap to 3%.
The estimated revenue from this change is approximately $779 million in the first budget cycle, with increased revenues projected in future years. Local governments, including cities and counties, have strongly advocated for lifting the cap to address funding needs. However, the public response has been overwhelmingly negative. More than 45,000 individuals signed in for a recent Senate Ways and Means hearing, with 43,000 expressing opposition. Concerns were especially strong among senior citizens, many of whom testified about the risk of losing their homes if property taxes were to rise 4% annually over several years. For the retail industry, increased property taxes would represent a substantial cost burden, particularly for businesses with large physical footprints.
Position: WR strongly opposes this bill.
Status: SB 5798 In Senate Ways & Means waiting for a vote / HB 2049 In House Committee on Finance waiting for a vote.
B&O Surcharge on Large Corporations and Financial Institutions – B&O Tax (HB 2045)
WR opposes HB 2045 unless retailing and wholesale are exempt. These sectors are at the same rate as manufacturing, which is already exempt from the bill. Retailing and wholesaling B&O tax rates have historically been kept low to support these industries, which operate on narrow profit margins but are vital for providing consumers with access to goods. With each new cost, the pressure to cut staff, reduce hours, automate, or close stores grows.
- WR opposes any tax increase to the B&O retailing rates of .00471 and the wholesaling rate of .00484.
- We support an exemption of retailing and wholesaling from HB 2045.
Position: WR opposes this bill.
Status: April 4, 2025: In House Committee on Finance waiting for a vote..
| | Photo by Washington State Standard | | |
House approves packaging recycling bill, rejects environmental crimes bill
This week, the House Appropriations Committee approved SB 5284, which establishes extended producer responsibility for product packaging. The bill now heads to the full House for consideration. If passed, it will return to the Senate for concurrence with House amendments.
In contrast, the committee declined to advance SB 5360, also known as the “crimes against the environment” bill. While there is broad agreement on the importance of protecting the environment, this measure went too far. It proposed civil and criminal penalties for individuals and businesses, while notably exempting government entities, which can also be significant contributors to environmental harm.
Under the bill, someone could be fined or even charged with a felony for relatively minor actions, such as spilling a can of paint or producing excess smoke from a backyard BBQ. Meanwhile, the state continues to fall short in holding retail thieves and other criminals accountable.
WR is encouraged by the committee’s decision not to move SB 5360 forward this session.
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WR urges caution on Paid Leave rate cap increase
The Paid Family and Medical Leave (PFML) program was established through a landmark compromise among business, labor, and policymakers. Two core principles were embedded in statute (RCW 50A.05.030(6)(b)(ii)): ensuring fund solvency and limiting premium rate volatility through a statutory cap of 1.2%.
WR supports the Senate version of SB 5292, which implements with JLARC’s recommendation to adopt a forward-looking rate-setting model to address projected solvency issues anticipated in 2029. However, the House amendment proposing to raise the premium cap from 1.2% to 2% threatens the program’s long-term financial sustainability, especially for single parents and small businesses already facing rising costs.
Given the current economic uncertainty, including inflation and unpredictable business conditions, WR urged the House Appropriations Committee to pause this legislation. Taking no action at this time may be the most responsible choice to avoid further strain on workers’ paychecks and employers’ operating expenses.
Washington is confronting budget shortfalls, in part due to overly optimistic fiscal assumptions. A more cautious approach is needed.
WR remains committed to the long-term health of PFML and supports thoughtful solutions to ensure its solvency. We urge lawmakers to preserve the original intent of the program: a balanced, stable, and sustainable benefit for both workers and employers.
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WR advances Right to Appraisal proposal for collision repair members
WR successfully helped advance SB 5721, a long-awaited Right to Appraisal proposal, on behalf of its collision repair members, many of whom are small, family-operated businesses with deep ties to their communities.
For years, collision shop owners have sought a more equitable process when insurance companies undervalue repair estimates. This year, they banded together to secure companion bills SB 5721/HB 1645 which will require all personal auto insurance policies to include a Right to Appraisal. This right allows consumers to seek a third-party assessment when there's a dispute over repair costs and sets timelines to prevent prolonged settlement delays.
When the Senate-passed version of the bill stalled in the House without a scheduled hearing, WR stepped in to request action from the House Consumer Protection & Business Committee. Behind the scenes, WR also helped coordinate negotiations between stakeholders, most notably insurers and repair shops, to reach agreement on key provisions.
WR commends the Houses for their bipartisan support in advancing the bill. Thanks to the efforts of members on the House Consumer Protection and Business Committee, SB 5721 has moved forward and, as of April 8, is now placed on second reading in the House Rules Committee.
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Expanded military definition in unemployment rule now includes Space Force
The Employment Security Department has adopted a final rule amending WAC 192-150-110, which outlines eligibility for unemployment benefits due to mandatory military transfers. The revision ensures that individuals who leave their jobs to relocate with a spouse or domestic partner transferred under military orders now have expanded protection, explicitly including those serving in the U.S. Space Force.
Previously, the regulation did not recognize the Space Force, a distinct military branch established in 2019, as part of the armed services for the purposes of this rule. With over 14,000 personnel, the Space Force operates under the Department of the Air Force but functions as a separate entity.
The updated rule aligns the definition of "military" with all branches of the U.S. Armed Forces, ensuring fair and consistent application of unemployment benefits.
This change goes into effect on May 2, 2025. For more details, visit the Employment Security Department’s rulemaking homepage.
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Apparel retailers grapple with higher-than-expected tariffs
The tariffs announced April 2 are steeper and broader than expected and affect almost every apparel and footwear retailer. Nearly all manufacturing is abroad, mostly in Asia, according to Wells Fargo analysts led by Ike Boruchow, who calculate that tariffs on softline goods like apparel rose from just under 7% to over 37% on a weighted basis. “This puts all 2025 guidance at risk,” they said.
Brands and retailers couldn’t really devise strategies until the policy was announced, and most were likely caught off guard, William Blair analysts led by Dylan Carden said. Especially hard hit are brands like On, Lululemon, Deckers and Gap Inc.’s labels that switched manufacturing to Vietnam, according to Evercore ISI analysts led by Michael Binetti.
Off-price retailers, because they offer value and often source domestically, are sheltered somewhat, according to Jefferies analysts led by Corey Tarlowe. “However, even Off-Price can be subjected to pressures from higher prices,” they said.
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Tariffs and inflation slow retail outlook for 2025
Retail sales are expected to grow at a slower pace in 2025, with projections ranging from 2.7% to 3.7%, according to the National Retail Federation (NRF). While a strong labor market continues to support spending, new tariffs are fueling inflation concerns and dampening consumer confidence.
The NRF warns that consumers, particularly lower-income households, have little room left to cut back after years of managing rising prices. Many have already shifted to budget retailers and discounted options. New trade policies, including a baseline 10% tariff announced by President Trump, are likely to hit the apparel industry hard and increase costs across the board.
Retailers and small business owners are bracing for uncertainty. “The pressure on small business right now is significant,” said Sarah Wells, founder of a maternity apparel brand. “Tariffs threaten our livelihood.”
Despite past resilience fueled by stimulus savings and wage growth, NRF Chief Economist Jack Kleinhenz cautions that hard data now points to a “slower trajectory for consumer spending”, making 2025 a year of cautious navigation for retailers of all sizes.
| | Seattle Council President Sara Nelson’s leadership as council president has caused divides among the Seattle City Council. (Kevin Clark / The Seattle Times) | | |
Tensions surface in Seattle City Council
As 2024 began, Councilmember Sara Nelson transitioned from a lone moderate voice to Council President, elected by a new slate of pragmatic colleagues, many of whom she helped get elected in 2023. But a recent vote to expand housing in SODO near the stadiums has exposed growing tensions within the Council.
Nelson’s rezone proposal passed 6-3, but not without friction. Councilmember Dan Strauss, the Council’s longest-serving member, criticized her for using her administrative power to influence legislation by assigning it to specific committees. He also voiced frustration at being removed from the committee responsible for long-term housing policy.
Nelson, however, remains undeterred. “I’m fine if people disagree with my policy positions, but I’m not going to shy away from taking on powerful institutions that want to preserve the status quo,” she said. “Because it’s not working, in so many ways, for the majority of our constituents.”
She’s not without support. Councilmember Maritza Rivera praised her as a leader who “brings people from across the city to solve the city’s toughest problems.”
Jon Scholes, president and CEO of the Downtown Seattle Association, commended Nelson for pushing forward even in an election year, saying she “wants to get things done.”
| | A general view of the Victorian International container terminal in Melbourne, Australia, on April 4, 2025. Australia and many others countries are subject to a 10% baseline tariff for imports to the U.S., per an executive order President Donald Trump signed April 2. Asanka Ratnayake via Getty Images | | |
Published on SupplyChainDive.com
By Philip Neuffer, Editor
April 7, 2025
Findings from a trade review completed last week hint at the future direction of the president’s policies.
The White House released a summary of its U.S. trade policy review findings Thursday in the wake of President Donald Trump’s order for a baseline 10% tariff and country-specific duties.
Trump initiated the review during his first day back in office in January. In a memorandum, he directed cabinet officials, including the U.S. Trade Representative and Secretary of Commerce, to evaluate U.S. trade agreements and potentially unfair trade practices by other countries.
The memorandum set April 1 as a deadline for officials to report their findings and suggest potential remedies, including the use of tariffs. Trump had already instituted some duties in the interim, with the global levies he ordered Wednesday building on some of the report’s findings.
“The Report makes recommendations to the President to reduce the trade deficit, including the imposition of a tariff on certain imports in pursuit of reciprocity and balanced trade,” the summary says, noting that the full report will not be made public.
Here are six important takeaways from the summary that indicate potential future actions by the Trump administration.
- China is under the microscope
The U.S.’ trade relationship with China faced particular scrutiny in the review. The summary says that China has not lived up to its side of the 2020 trade agreement with the U.S, particularly in regards to agriculture, financial services and intellectual property rights protection.
Officials also assessed the Biden administration’s Section 301 investigation into China’s trade practices and determined that additional reviews under the provision may be needed.
Even prior to Tuesday’s report, the Trump administration had already initiated tariff hikes on imports from China by 20%. Trump on Wednesday announced that the U.S. would charge a 34% reciprocal tariff on China as part of a country-by-country implementation.
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Senate advances public safety measure
On Tuesday, the Senate Ways and Means Committee approved HB 2015, a key public safety funding measure. The bill would establish a grant program to help local governments hire police officers, prosecutors, defense attorneys, and treatment specialists, aiming to create safer communities across the state.
In addition, the legislation would allow city and county councils to adopt public safety-specific sales tax increases to sustain these efforts over the long term.
WR strongly supports HB 2015 and urges the full Senate to pass the bill. WR also encourages budget negotiators to include $100 million in grant funding in the final Operating Budget. Governor Ferguson has expressed support for this approach.
| | GapStudio with Alex Consani, Imaan Hammam and Anok Yai. Gap | | |
Gap unveils first collection from GapStudio by Zac Posen
Gap has launched the inaugural collection from its GapStudio subbrand, designed by creative director Zac Posen. The 51-piece womenswear capsule, named Collection 01, features a range of outerwear, separates, and two new colorways of a poplin shirtdress that sold out last year. The collection is available in sizes XXS to XXL and is priced between $78 and $248.
The collection showcases staple items like trench coats and denim bottoms in colors such as navy, khaki, and pop-orange. Posen’s signature approach to drape and tailoring influences the designs, offering innovative denim treatments and new silhouettes. The collection is available online and in select stores across New York, California, New Jersey, Florida, Illinois, and select international markets.
This launch marks a key moment in Gap’s refresh under CEO Richard Dickson, with Posen’s vision aiming to elevate the brand’s legacy of creativity and self-expression. With future collaborations and designs on the horizon, GapStudio promises to bring both accessible collections and exclusive pieces to the retail world.
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The Home Depot Foundation honors National Volunteer Month with veteran-focused projects
In celebration of National Volunteer Month, The Home Depot Foundation and its associate volunteer team, Team Depot, are launching service projects nationwide to support veterans and local communities. Throughout April, volunteers will work alongside Rebuilding Together, Volunteers of America, and other nonprofit partners to improve housing accessibility for veterans, installing ramps, widening doorways, and completing other critical home modifications.
This effort reflects the Foundation’s long-standing mission to serve those who have served, helping ensure veterans live in safe, accessible homes. “Our associates are passionate about giving back,” said Erin Izen, executive director of The Home Depot Foundation. “We’re proud to amplify their efforts during National Volunteer Month.”
Since 2011, The Home Depot Foundation has partnered with over 10,000 nonprofits and contributed more than 2.5 million volunteer hours. This spring’s projects stretch across the country, including renovations of transitional housing and revitalization of community spaces that support military families.
To learn more about these initiatives, visit HomeDepotFoundation.org.
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Spring savings in full bloom
Spring is here, and top retailers are rolling out deals to help customers refresh their homes, inside and out. The Home Depot, Lowe’s, and Target are leading the way with major sales on gardening gear, outdoor essentials, and household must-haves.
The Home Depot’s Spring Black Friday event runs through Wednesday, April 16, offering deep discounts on mulch, outdoor tools, and cordless equipment like the RYOBI and DEWALT trimmer kits. Shoppers can also enjoy one-day-only savings during Spring Deal Days, April 24–May 7. As part of the campaign, The Home Depot released its Spring Homeowner "Must-Do" Survey, which found that 93% of homeowners are planning to take on a home improvement project this season. Top priorities include lawn care, garden refreshes, and outdoor entertaining upgrades.
Lowe’s SpringFest brings fresh promotions every two weeks, with highlights like 5 for $10 Sta-Green mulch, up to 40% off appliances, and exclusive patio sets. Loyalty members get additional perks, including bonus points and special doorbusters.
Target is also joining the seasonal celebration with deals on home and garden products. Shoppers can find outdoor furniture, spring-themed décor, and seasonal kitchenware at discounted prices, both in-store and online. Through Target Circle, members enjoy extra savings and bonus offers on spring essentials.
As the weather warms up, these spring sales are the perfect excuse to clean up, plant something new, and grill with friends. Get inspired and stock up before these seasonal savings disappear.
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WR diversity statement
WR is committed to the principles of justice, equity, diversity, and inclusion. We strive to create a safe, welcoming environment in which these principles can thrive.
We value all people regardless of race, ethnicity, gender, religion, age, identity, sexual orientation, nationality, or disability, and that is the foundation of our commitment to those we serve.
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Renée Sunde, President/CEO — 360.200.6450 — Email
Mark Johnson, Sr. VP of Policy & Government Affairs — 360.943.0667 — Email
Crystal Leatherman, Dir of Local & State Government Affairs — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
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