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Report: Tariffs on Mexico mean at least 6,000 Arizona jobs lost

(AP Photo/Jacquelyn Martin)

PHOENIX — A new report found that if President Donald Trump follows through on his plan to impose a 5% tariff on imports from Mexico starting Monday, Arizona will feel a hit to its economy.

The report from Tempe-based Rounds Consulting Group found that this initial tariff would result in Arizonans losing out on 6,000 jobs and paying another $60 per year on average.

“If the tariffs go into effect, and it starts at 5%, most of that money gets passed on in terms of tax, in terms of higher prices, to the consumers, and so you’re going to see less economic activity,” the consulting group’s President Jim Rounds told KTAR News 92.3 FM’s Arizona’s Morning News on Friday. 

The report found that if the tariffs continue to increase up to 25% as Trump has threatened, the cost to Arizonans could be as high as 30,000 jobs lost and an extra $300 in costs annually per resident.

Arizona imported $9 billion worth of goods from its southern neighbor last year, one of the highest totals in the country, according to the report.

Arizona Chamber of Commerce President Glenn Hamer told KTAR News on Thursday that while he understand Trump’s intention to use the tariff to force Mexico to better enforce illegal immigration laws, he thinks the tariffs more so hurt Americans.

“The crisis on the border is real. We feel it in the border communities,” Hamer said.

“With that said, we believe that imposing tariffs on our friend, ally and neighbor, that American consumers and Arizona consumers are going to pay, is not the right way to go.”

He said he hopes the two countries can come to an agreement to avoid the tariffs.

“Our strong hope is that we won’t see tariffs Monday, and that there will be enough progress made in the meeting between American and Mexican officials to at least delay the president’s proposed tariffs,” he said.

“That’s our hope, but it’s just really impossible to predict what’s going to happen.”

KTAR News 92.3 FM’s Jim Cross contributed to this report. 

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