NOGALES, AZ — While none of President Donald Trump’s first-day executive orders imposed tariffs, he confirmed he’s considering them on Canada and Mexico starting on February 1.
Mexico is Arizona’s largest trading partner. The Arizona Commerce Authority totaled exports from Arizona to Mexico at $8 billion and imports from Mexico into Arizona at $11.8 billion in 2023.
Monday, Trump announced the America First Trade Policy, which calls for the Secretary of Commerce and the Secretary of Homeland Security to look into creating an External Revenue Service to “collect tariffs, duties, and other foreign trade-related revenues.”
"It will be massive amounts of money pouring into our treasury coming from foreign sources,” Trump said.
Top imports from Mexico include fresh produce, motor vehicles, machinery and medical equipment.
"If he says flat, 25% on everybody, we can see produce companies completely closing down,” said Joshua Rubin, Vice President of Business Development at Javid LLC.
Rubin said there could be lasting impacts on the big business at Arizona’s border that helps feed people across the country.
“Most of the companies that I deal with on a day-to-day basis for my company are right now analyzing the world to see ‘where’s the best place to have my other operation at? I thought it was Mexico but it might be too expensive,’” Rubin said.
Trump has previously threatened tariffs of up to 60% on China while campaigning. However, he has not released a specific number this week.
