Professor says new tariffs will drive up Arizona grocery bills

PHOENIX — Mexico and Canada will soon be feeling the effects of President Trump’s new 25% tariffs — and so could your grocery bill.

The new economic levies go into effect on Tuesday.

Not only that, but on top of Mexico and Canada’s tariffs, China’s pre-existing tariffs will be doubled to 20% today.

What are the tariff effects on Arizona grocery stores?

There are both short-term and long-term economic effects of these tariffs on consumers, according to Arizona State University Professor Robert Wiedmer.

In fact, he said the tariff rate is directly related to potential price increases.

“It can be that food products might see higher prices of around 20 to 25%,” he told KTAR News 92.3 FM’s Arizona’s Morning News.

Grocery prices will rise immediately because of the quick overturning of produce and small amount of inventory kept in stores, he added.

Broader tariff effects on Arizona economy

Tariffs could also have broader reaching ripple effects. Outside of groceries, other products will also rise in price, albeit at a slower pace, Wiedmer said.

“Imagine even a product made in the U.S.,” he said. “Components used to make that product very likely came at one point into the U.S. either from Mexico, from China or from Canada. Therefore, we’ll also see a delayed price increase.”

Wiedmer also said major manufacturers in the Valley, such as aircraft and defense manufacturing companies, will be among those facing a markup.

Tariff effects could worsen country’s trade deficit, ASU professor says

The U.S. is currently in a trade deficit, which isn’t necessarily a bad thing because it shows the strength of the U.S. dollar, Wiedmer said.

However, this position can be bad when tariffs are involved. That’s because the U.S. relies heavily on tariffed countries for products.

“It can be bad if we are just too dependent on certain imports that we should make in house in in the U.S.,” he said.

Mexican President Claudia Sheinbaum responded to the tariffs on Tuesday morning, saying Mexico will use retaliatory tariffs on U.S. goods as of Sunday.

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