3TV/CBS5: New tariffs will impact local companies

Friday, June 1, 2018

KPHO 3TV Phoenix reported that the Trump Administration's new tariffs on steel and aluminum imports from Mexico, Canada and the European Union will affect Arizona businesses and consumers.

Mexico and Canada, Arizona’s largest foreign trading partners, quickly announced plans to impose retaliatory tariffs, which could put pressure on 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 ASU Morrison Institute for Public Policy.

“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.

(Running time: 1:28)

SEE: Trump tariffs hit Arizona's biggest trading partners