President Trump has announced 50% tariffs on most Canadian goods. Canada is one of Arizona’s biggest trading partners, with tariffs of 10-12% taking effect on more than 80 countries. The moves come after the U.S. Supreme Court struck down an earlier round of tariffs this year, saying the president did not have the authority to levy them. The tariffs are making it harder for Arizona businesses to plan, hire, and keep costs down, as well as do business in general.
There is also concern about the USMCA, or what was formerly known as NAFTA, could be in jeopardy, as President Trump said last week he does not care about updating the USMCA, even as Canada says it will send senior trade officials to Washington for more talks this week amid new tariffs and heightened trade tensions.
Todd Sanders, President and CEO of the Greater Phoenix Chamber of Commerce, joined “Arizona Horizon” to explain more about the impact on Arizonians.
Sanders noted that the taxes that are put onto businesses are not taken in by them, but instead to the consumers themselves.
“When we’re thinking about the breakfast table and having our breakfast and what those costs look like, that’s certainly going to have an impact on everyday Arizonans,” Sanders said.
He added that businesses dealing manufacturing would feel the greatest impacts of these tariffs. However, Sanders also said that this can affect the different types of businesses that feed into the different industries that have been affected by these tariffs.
As for USMCA, Sanders says that there is still hope in coming out with a deal. Because there was no full renewal of it, he says that it is now on a year-to-year renewal basis to keep it around.
The element of uncertainty when it comes to these taxes is leaving businesses in Arizona asking the tough questions of what are the best ways to move forward to continue doing business efficiently in the state.
