PHOENIX (3TV/CBS 5) - President Trump's planned tariffs on Mexico could cost Arizona consumers $300 a year and kill roughly 30,000 jobs, according to a new analysis by one of the state's top economists.
Starting Monday, Trump plans to slap a 5% percent duty on all Mexican imports unless the country slows a wave of migrants from Central American making their way to the U.S. southern border.
The president said he plans to ratchet up the tariffs by 5% each month until it reaches 25% in October.
Jim Rounds, an economist for the Tempe-based Rounds Consulting Group, estimates that each 5% increment will cost Arizona consumers $60 a year and eliminate 6,000 jobs.
"If fully implemented within five months, the cost to state residents would increase to approximately $300 per person with job losses totaling 30,000," Rounds said in an analysis released on Thursday.
The proposed tariffs could hit Arizona harder than most states as Mexico is the state's largest trading partner.
Last year, Arizona imported more than $9 billion in goods from Mexico.
The added cost on goods like agricultural products and electronic equipment will be passed on to consumers and importers, Rounds said.
"This assessment of the impact of tariffs on Mexican imports is serious, but unfortunately it's not unexpected," Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry, said in a statement.
The chamber, which is Arizona's largest business group, has voiced its strong opposition to Trump's tariff policies.
Hamer is a longtime critic of Trump and has raised questions about his economic philosophy. During the 2016 election, Hamer said Trump would be a "menace" to Arizona's economy.