Trump’s Tariffs: 5 Ways Arizona Could Pay the Price
Before the election, it seems that Arizonans were worried about the outcome. I heard fear and lament from friends and family across both sides of the political spectrum.
Now that the ballots have been counted and the ink is dry, President-elect Donald Trump has already begun considering imposing a 25% tariff on goods from Mexico and Canada, two of Arizona's biggest trading partners. The proposed import fees will certainly shake things up in our state.
Donald Trump Announced Tariffs on Mexico, Canada, and China
Trump announced on his social media site that he plans to levy a 25% tariff on all imports from Mexico and Canada, beginning on inauguration day, January 20. He also announced his intention to levy an additional 10% fee on all imports from China.
The justification, he says, is to reduce illegal immigration and the importation of illicit drugs like Fentanyl, problems he believes could have been curtailed by the three nations.
What the Trump Tariffs Will Mean for Arizona
So, what does this mean for us in Arizona? Obviously, prices will go up even more than they already have. Arizona imported almost $900 million worth of tomatoes from Mexico last year, and much of its fresh produce is imported from Mexico.
The tariffs could cause the cost of these goods to skyrocket at the grocery store, straining our already-stretched wallets.
Food isn't the only place we'll feel the pinch. Arizona also imports a ton of car parts and other manufacturing materials from Mexico. The proposed tariffs could make it more expensive to produce goods locally, which will likely lead to higher prices for everything from cars to electronics.
Inflation in Arizona
Inflation has already hit Arizona hard, and the tariffs could add more fuel to the fire. Higher prices on imported goods could lead to more inflation because businesses will have to pass the higher costs onto consumers.
The cost of living in Arizona will likely rise, making it even harder for families to stretch their already over-taxed budgets to make ends meet.
Small businesses could struggle with the increased costs, leading to layoffs or even the end of some small businesses if forced to close their doors.
While these tariffs might aim to protect American jobs, they could end up making life more expensive for us. This may be a bargaining chip Mr. Trump is using to turn the tables in favor of jobs and a reduction in the immigration crisis, but in the end, Arizona could end up paying the price.
Here are Some Products that Could Increase Under the New Tariffs
- Produce like tomatoes, bell peppers, avocados
- Car parts
- Automobiles
- Manufacturing materials
- Electronics
Sources: CBS News | Truthout.com | NPR | USA Today | AZ Central
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