Trump tariffs hit Arizona's biggest trading partners

Posted: Updated:
(Source: 3TV/CBS 5) (Source: 3TV/CBS 5)
Local companies that rely heavily on steel and aluminum will feel the most impact, like defense contractors Raytheon, Boeing and Honeywell, said Sapna Gupta, a senior policy analyst at the ASU Morrison Institute for Public Policy. (Source: 3TV/CBS 5) Local companies that rely heavily on steel and aluminum will feel the most impact, like defense contractors Raytheon, Boeing and Honeywell, said Sapna Gupta, a senior policy analyst at the ASU Morrison Institute for Public Policy. (Source: 3TV/CBS 5)
PHOENIX (3TV/CBS 5) -

The Trump Administration's new tariffs on steel and aluminum imports from Mexico, Canada and the European Union will affect Arizona businesses and consumers, although the impacts may be muted at first, analysts say.

The 25 percent tariffs on imported steel and 10 percent tariffs on imported aluminum took effect for those countries as the clock struck midnight eastern time, turning the calendar to June 1.

[RELATED: Trump tariffs on US allies draw retaliation threats]

Mexico and Canada are Arizona’s largest foreign trading partners, accounting for about half of what businesses in the Grand Canyon State sell abroad. Both countries quickly announced plans to impose retaliatory tariffs, which could put pressure on those exports.

Last year, Arizona companies exported more than a billion dollars in machinery and fabricated metal products to Mexico and Canada. The state exported nearly $21 billion worth of goods in all, according to the U.S. Census Bureau. 

Local companies that rely heavily on steel and aluminum will feel the most impact, like defense contractors Raytheon, Boeing and Honeywell, said Sapna Gupta, a senior policy analyst at the ASU Morrison Institute for Public Policy.

“There should not be an immediate impact on jobs; however, where I see this impacting is how companies plan their future investment,” she said.

The prospect of tariffs on foreign metals has already buoyed the price of U.S. steel. Flat-rolled steel prices are at the highest levels in a decade, according to S&P Global Platts.

However, higher metals prices, both foreign and domestic, may not affect large companies right away, Gupta said.

“Manufacturers buy steel and aluminum months ahead. They've agreed on a price and they have their supply set, so it could take a while for that impact to be felt; it could take several months or even longer,” she said. “But where you can see the impact right away is on small businesses.”

Click/tap here to download the free azfamily mobile app.

Copyright 2018 KPHO/KTVK (KPHO Broadcasting Corporation). All rights reserved.


Derek StaahlDerek Staahl is an Emmy Award-winning reporter and fill-in anchor who loves covering stories that matter most to Arizona families.

Click to learn more about Derek.

Derek Staahl

This once-uncompromising "California guy" got his first taste of Arizona in 2015 while covering spring training baseball for his former station. The trip spanned just three days, but Derek quickly decided Phoenix should be his next address. He joined CBS 5 and 3TV four months later, in August 2015. Before packing his bags for the Valley of the Sun, Derek spent nearly four years at XETV in San Diego, where he was promoted to Weekend Anchor and Investigative Reporter. Derek chaired the Saturday and Sunday 10 p.m. newscasts, which regularly earned the station's highest ratings for a news program each week. Derek’s investigative reporting efforts into the Mayor Bob Filner scandal in 2013 sparked a "governance crisis" for the city of San Diego and was profiled by the region’s top newspaper. Derek broke into the news business at WKOW-TV in Madison, WI. He wrote, shot, edited, and presented stories during the week, and produced newscasts on the weekends. By the end of his stint, he was promoted to part-time anchor on WKOW’s sister station, WMSN. Derek was born in Los Angeles and was named the “Undergraduate Broadcast Journalism Student of the Year” in his graduating class at USC. He also played quads in the school’s famous drumline. When not reporting the news, Derek enjoys playing drumset, sand volleyball, and baseball.

Hide bio

  • Featured VideoMore>>

  • VIDEO: Drone video of oil tanker derailment in floodwaters

    VIDEO: Drone video of oil tanker derailment in floodwaters

    Over 30 oil tanker cars derailed in Iowa floodwaters, causing nearby drinking water wells to be shut off. Drone video shows the extent of the spill.

    More >

    Over 30 oil tanker cars derailed in Iowa floodwaters, causing nearby drinking water wells to be shut off. Drone video shows the extent of the spill.

    More >
  • Dirty Dining June 22: Health inspectors find rodent droppings throughout restaurant

    Dirty Dining June 22: Health inspectors find rodent droppings throughout restaurant

    Friday, June 22 2018 11:00 PM EDT2018-06-23 03:00:06 GMT
    Mekong Palace in Mesa had 5 health code violations. (Source: 3TV/CBS 5 News)Mekong Palace in Mesa had 5 health code violations. (Source: 3TV/CBS 5 News)

    Every week, CBS 5 News is sent a list of restaurants that have been recently inspected by Maricopa County's Environmental Services Department. CBS 5 News selects restaurants with some of the highest numbers of "risk factors." According to health inspectors, risk factors are considered major health code violations.

    More >

    Every week, CBS 5 News is sent a list of restaurants that have been recently inspected by Maricopa County's Environmental Services Department. CBS 5 News selects restaurants with some of the highest numbers of "risk factors." According to health inspectors, risk factors are considered major health code violations.

    More >
  • VIDEO: House floor protest

    VIDEO: House floor protest

    Democratic Congressman Ted Lieu of California played audio on the House Floor from what is reported to be recorded inside a detention center. The Speaker Pro Tempore asked Lieu to suspend several times and called in the Sergeant at Arms. Rep. Lieu eventually yielded the floor and stopped playing the audio.

    More >

    Democratic Congressman Ted Lieu of California played audio on the House Floor from what is reported to be recorded inside a detention center. The Speaker Pro Tempore asked Lieu to suspend several times and called in the Sergeant at Arms. Rep. Lieu eventually yielded the floor and stopped playing the audio.

    More >