Tariffs Are a Hidden Tax on Arizona Families

The Trump administration’s newly imposed tariffs aren’t just a misguided trade policy—they’re a tax hike on hardworking Arizona families. Tariffs are often sold as a way to protect American industries, but in reality, they act as a backdoor tax that shifts the financial burden away from the wealthy and corporations and onto everyday consumers. 

While Trump has recently imposed tariffs of 25 percent on imports from Mexico and Canada and 20 percent on imports from China, he is likely to pursue additional tariffs on imports from other countries and specific goods and materials. In fact, on the campaign trail, Trump proposed 20 percent across-the-board tariffs on imports, coupled with a 60 percent tariff on Chinese goods. If Trump’s campaign tariffs were fully realized, it could cost the average American household an extra $2,600 per year, raising prices on everything from food to car repairs. Arizona families already face high costs for essentials like health care, housing, and transportation—these tariffs would only make things worse. 

Tariffs drive up costs across the board 

There is broad consensus among economists that tariffs hurt the economy. Here’s why: 

• Higher Consumer Prices: Tariffs on imported goods lead to higher prices at checkout. For example, six out of every ten auto replacement parts used in U.S. shops are imported from Mexico, Canada, and China. When tariffs increase, repair costs and insurance rates for Arizona drivers will skyrocket, making it even harder for families to afford basic transportation. (As a note: immediately after announcing the tariffs, the Trump administration has already adjusted its policy and delayed tariffs for US automakers by 30 days. However, not only is 30 days not enough time for automakers to reconfigure their supply chains, but it is unlikely that the administration will extend the deadline.)

• Harm to Domestic Manufacturing: While tariffs are often framed as a way to boost American jobs, history tells a different story. When Trump imposed tariffs during his first term, they led to higher costs for manufacturers who rely on imported materials. Instead of stimulating industry, those tariffs resulted in net job losses as companies struggled with rising production expenses. 

• Threats to Health Care Services: The health care industry relies heavily on imported medical equipment and supplies. Research by economists Omar Barbiero and Hillary Stein found that broad-based tariffs could make health care even more expensive, likely hitting the elderly population in the United States particularly hard. Since 1997, the costs for nursing homes and certain forms of elder care in the Consumer Price Index have risen at almost twice the pace of overall inflation —tariffs would only add to this burden. 

Arizona needs smart revenue, not hidden taxes 

Arizona faces real challenges—our state needs funding for affordable housing, child care, health care, and critical infrastructure like water and transportation. But tariffs are the wrong way to generate revenue. Instead of placing the burden on middle-class families, we should focus on reversing tax cuts for the wealthy and large corporations. 

Tariffs are nothing more than a bait-and-switch tax policy designed to benefit the wealthiest at the expense of working families. Arizonans should reject this hidden tax and demand real solutions that prioritize economic growth for everyone—not just those at the top. 

Tariffs are bad for Arizona, bad for small and medium-sized businesses, and bad for families. We deserve better.