PHOENIX — Despite record trade between Arizona and Mexico last year, companies with international ties are worried about the future as President Donald Trump’s tariffs kick in.
The administration is now imposing 25% tariffs on Mexican and Canadian goods, with the exception of Canadian energy, which is at 10%. A 20% tariff on Chinese goods is also in effect.
Cross-border trade data valued all Mexican imports and U.S. exports through Arizona ports of entries including airports, at $38.3 billion last year. That’s a 7.4% increase from 2023.
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“It is a significant change and companies are trying to figure out what that means for their supply chains,” International business advisor Luis Ramirez said. “Can they shift production?”
Top goods include produce, auto parts and machinery. Economists expect these goods, including lumber from Canada, could rise in the near future.
Ramirez said uncertainty surrounding how long the tariffs will be in place is stalling new investment south of Arizona’s border.
“How they’re going to move forward. ‘Does it make sense if I’m going to be in this trade war to invest hundreds of millions of dollars in Mexico or Canada or do I invest it here?’ Companies are trying to figure all that out,” Ramirez said.
