Trump Tariffs Are Hitting Arizona Wallets
By now, most Americans have felt the impacts of President Trump’s tariffs. Groceries, home goods, cars, construction materials – it seems like nearly everything has gotten more expensive as a result. Here’s what the tariffs have meant for Arizonans.
What The Tariffs Actually Do
Put simply, a tariff is a tax on imported goods. Tariffs make imports more expensive, and in practice, the burden of rising costs falls on American consumers rather than foreign producers.
President Trump imposed tariffs on major U.S. trading partners to the highest level in nearly a century using the International Emergency Economic Powers Act (IEEPA). IEEPA grants the president powers to take certain economic actions upon declaring a national emergency. In April 2025, Trump declared a national emergency over the “large and persistent” trade deficit between the U.S. and the rest of the world, which he claimed cleared the way for his tariffs. He also used the law in February 2025 to impose levies on Mexico, Canada, and China under a separate national emergency declaration.
While Congress has the power to weigh in on tariffs, House Republicans repeatedly blocked votes on overturning Trump’s tariff actions throughout 2025. The House was unable to pass another block, and the last one expired after January 31, 2026. This allowed Democrats to force a vote on Canada tariffs. The vote marked the first time in nearly a year that the House was allowed to directly weigh in on Trump’s tariff policy.
On February 20, the Supreme Court overturned most of Trump’s tariffs, ruling that they violated federal law. The decision upended tariffs that Trump established with IEEPA. Following the ruling, Trump immediately announced new 10% global tariffs on all imports entering the U.S, under Section 122 of the Trade Act of 1974, which has a limit of 150 days. These new tariffs can remain in place through July 24, but could only continue beyond that if Congress passes an extension of these tariffs. The day after the Supreme Court ruling, Trump said he would increase the rate to 15%. The new tariffs ultimately went into effect on Tuesday, February 24, at a rate of 10%, but the administration said it was working to increase them to 15%.
It remains to be seen how the ruling and new tariffs will affect prices for imported goods, but we can expect things to remain uncertain and volatile for the near future. Despite Trump’s repeated claims that the IEEPA tariffs would be paid for by foreign producers, American consumers and small businesses are the ones who have been feeling the largest impacts. In fact, Americans paid the vast majority of the $200 billion revenue from the tariffs in 2025 in the form of higher prices for apparel, video and audio products, motor vehicle parts, groceries, furniture, tools, hardware, and more – all told, 95% of 2025 tariff costs fell on consumers. According to a recent report from the Tax Foundation, tariffs cost the average American household roughly $1,000 last year alone. Arizonans paid $2.1 billion in tariffs in 2025. All of this is likely to fuel higher inflation over time.
And it’s not just imported goods. More and more businesses are reacting to the uncertainty of the current moment by raising prices on goods unaffected by tariffs. During the first Trump administration, after tariffs were raised on washing machines, the price of dryers also went up, even though they were unaffected by the tariffs. Non-tariffed goods are getting more expensive this time around too, with a significant share of businesses reporting that they’re raising prices on goods unaffected by tariffs.
How Eliminating “De Minimis” Is Creating Surprise Costs
Online shopping is getting more expensive too. As part of Trump’s tariff agenda, an exemption on import duties for items under $800 expired in August 2025. That development has created confusion and chaos across the market as consumers and small business owners are being hit with surprise tariff bills – sometimes over $1,000. The de minimis rule, which allows low-value imports to enter the U.S. without fees, had been in place for nearly a century before Trump eliminated the exemption.
Arizona small businesses are feeling the pinch. As the de minimis exemption ended in August, Timberlake Crafts, a Tucson Comic Con vendor, reported that some of their materials, like ink, have tripled in price since last year – which can add up quickly the more you make and sell.
Trade Tensions Close To Home
Trump’s tariffs have affected trade with a number of countries, but Arizonans should pay special attention to changes to trade with Mexico. In 2024, Arizona imported a whopping $11.6 billion in goods from Mexico – more than double Arizona’s second-largest trade partner, China, at $5.4 billion, and a third of Arizona’s total imports.
That’s bad news, especially for grocery prices. Arizona distributors rely heavily on Mexican fruits and vegetables to keep grocery stores stocked. If tariffs increase costs for importers, those costs will be passed along to retailers and ultimately consumers in the form of higher prices.
Exports are also a concern as states face retaliatory tariff pressure from trading partners. 28% of Arizona’s exports – nearly a third – go to Mexico. A retaliatory tariff from Mexico would send shockwaves through Arizona’s economy.
Arizona’s other largest trade relationships with Canada and China are also impacted by changes in tariff policy. Canada does $2.5 billion in trade with Arizona, with a majority of imports being everyday essentials like construction materials, vehicles, and bread and bakery products. And in 2024, Arizona imported $5.4 billion in goods from China, with smartphones and other electronics leading the pack.
Because Arizona’s economy is so deeply tied to international trade, Arizonans have felt these changes close to home.
Small Businesses Are Feeling The Squeeze
Across the state, small businesses are reeling from the tariff policies.
In Scottsdale, LDV Winery paid a 9% tariff on corks from Portugal. Other supplies, like bottles, labels, and packages could also be touched by the tariffs. In Pearce, vineyard owner Bob Dixon has to shell out for rising costs for bottles, barrels, and winemaking equipment.
Tempe’s Brick Road Coffee has had to cut its growth budget, and have had to remove some drinks from their menu due to product unavailability.
Tucson’s Pamilihan Pinoy Asian Grocery is having trouble keeping prices low for Filipino customers looking for a taste of home.
Morton Glass Works in Tucson, which sells cutting jigs for stained glass shops, requires a special type of grid surface only made in China. Thanks to a 145% tariff imposed on that item, owner Jennifer Walkovich has had to increase prices.
Tucson’s GameBro reported that prices went up as high as 15% during the holiday season due to the chaos and confusion created by the tariffs.
Arizona breweries are contending with tariffs on aluminum and steel, and have concerns about increased prices driving away customers.
In Phoenix, Wildings Toy Boutique has had trouble keeping up with an economic landscape that keeps shifting the ground.
Together, these individual stories show that across Arizona, small businesses are being forced to absorb higher costs, scale back growth, or pass price increases on to customers just to stay afloat.
Conclusion
From higher grocery bills to squeezed small businesses, the costs of these tariffs are landing squarely on Arizonans. As trade tensions continue, families and local businesses across the state are left paying the price.