Trade Archives - ˿Ƶ Business News /category/trade/ Business is our Beat Wed, 25 Feb 2026 02:13:29 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 /wp-content/uploads/2019/01/cropped-Icon-Full-Color-Blue-BG@2x-32x32.png Trade Archives - ˿Ƶ Business News /category/trade/ 32 32 Arizona international trade hits new heights in 2025, Taiwan surges to number two spot /2026/02/24/arizona-international-trade-hits-new-heights-in-2025-taiwan-surges-to-number-two-spot/?utm_source=rss&utm_medium=rss&utm_campaign=arizona-international-trade-hits-new-heights-in-2025-taiwan-surges-to-number-two-spot /2026/02/24/arizona-international-trade-hits-new-heights-in-2025-taiwan-surges-to-number-two-spot/#respond Wed, 25 Feb 2026 02:13:28 +0000 /?p=18147 Arizona’s global economic profile soared in 2025 as the state posted record-breaking international trade and foreign direct investment figures, underscoring its emergence as a leading U.S. hub for advanced industries and global commerce. According to newly released data from the Arizona Commerce Authority, the state’s exports and imports expanded significantly, with strong gains across high-tech […]

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Arizona’s global economic profile soared in 2025 as the state posted record-breaking international trade and foreign direct investment figures, underscoring its emergence as a leading U.S. hub for advanced industries and global commerce.

According to from the Arizona Commerce Authority, the state’s exports and imports expanded significantly, with strong gains across high-tech sectors and an especially notable rise in trade with Taiwan.

Arizona companies exported $44.4 billion in goods in 2025 — a 37 % increase over the prior year and among the fastest export growth rates in the nation — far outpacing the U.S. average. The state also saw massive increases in imports and international investment, creating thousands of new jobs statewide.

Key highlights include Arizona’s top rankings in several advanced export categories:

  • #1 in Metal Ores ($2.7 B, +19.9 %)
  • #3 in Computer Equipment ($9 B, +205 %)
  • #5 in Semiconductors & Electronic Components ($6.3 B, +84 %)
  • #8 in Medical & Control Instruments ($2.4 B, +14 %)
  • #10 in Aerospace Parts ($5.6 B, +4.3 %)

These gains reflect Arizona’s continued strength in manufacturing, technology, and innovation, all sectors that are driving the state’s global export footprint.

“Arizona has emerged on the world stage as a global economic powerhouse, leading to more family-sustaining jobs and generational opportunity for Arizonans,” said Governor Katie Hobbs. “I’m proud that Arizona is setting the pace for innovation and technological progress and proving what’s possible when we lead boldly.”

Taiwan’s rapid climb on Arizona’s trade chart

One of the most striking developments in the new data is the surge in economic exchange with Taiwan. In 2025, Taiwan surpassed both Canada and China to become Arizona’s second-largest trading partner behind Mexico, with total trade exceeding $21.2 billion.

This remarkable rise marks a major shift in Arizona’s global trade relationships and underscores the deepening economic ties between the state and one of the world’s most important technology and manufacturing economies. Led by key components and advanced technologies, Arizona’s imports from Taiwan rose sharply, while exports also expanded meaningfully.

The upswing with Taiwan reflects successful international trade missions, enhanced business partnerships, and increased cross-border investment activity. Earlier efforts by state leaders to promote Arizona’s workforce, innovation ecosystem, and business climate abroad have helped elevate the state’s global competitiveness, particularly in sectors like semiconductors and computing. The growing collaboration also mirrors broader geopolitical trade developments boosting tech-focused cooperation between the U.S. and Taiwan.

˿Ƶ and Business Leaders Weigh In

Business and civic leaders highlighted the significance of these gains for Arizona’s long-term economic prospects. Danny Seiden, president and CEO of the Arizona ˿Ƶ of Commerce & Industry, emphasized the role of sound public policy and a stable business climate in fueling trade growth.

“Arizona’s growth in global trade didn’t happen by accident. It reflects years of smart policy, collaboration between the public and private sectors, and a business climate that gives companies the confidence to invest, hire, and expand here,” Seiden said. “These record trade gains underscore why a competitive, predictable environment matters.”

Sandra Watson, president and CEO of the Arizona Commerce Authority, noted that the state’s strategic emphasis on international engagement is paying dividends across industries, driving job creation and innovation opportunities for communities statewide.

“Arizona’s global prominence has never been greater,” Watson said. “Our record-setting trade and investment reflect a bold strategy and strategic partnerships, leading to more jobs, innovation, and opportunity for communities across our state.” 

Arizona’s global economic outlook

With more than $195 billion in foreign direct investment announced since 2020 and a robust pipeline of projects from international partners including Taiwan and Japan, Arizona’s role on the global economic stage continues to strengthen. The state attracted 55 new foreign investment projects in 2025 alone, projected to generate more than 25,000 new jobs.

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˿Ƶs of commerce across Arizona join national coalition to preserve USMCA ahead of first formal review /2025/12/03/chambers-of-commerce-across-arizona-join-national-coalition-to-preserve-usmca-ahead-of-first-formal-review/?utm_source=rss&utm_medium=rss&utm_campaign=chambers-of-commerce-across-arizona-join-national-coalition-to-preserve-usmca-ahead-of-first-formal-review /2025/12/03/chambers-of-commerce-across-arizona-join-national-coalition-to-preserve-usmca-ahead-of-first-formal-review/#respond Wed, 03 Dec 2025 15:55:30 +0000 /?p=18075 More than two dozen Arizona chambers of commerce have joined a massive coalition of over 500 business and agriculture groups nationwide in a letter urging the Trump administration to preserve the United States-Mexico-Canada Agreement (USMCA). The letter, sent December 1 to U.S. Trade Representative Jamieson Greer, comes as the three North American nations prepare for […]

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More than two dozen Arizona chambers of commerce have joined a massive coalition of over 500 business and agriculture groups nationwide in a letter urging the Trump administration to preserve the United States-Mexico-Canada Agreement (USMCA).

, sent December 1 to U.S. Trade Representative Jamieson Greer, comes as the three North American nations prepare for the agreement’s “joint review,” a critical stipulation of the trade deal scheduled for 2026 that could determine the pact’s long-term survival.

While acknowledging that certain compliance issues require remediation, the coalition emphasized that USMCA remains “critical to our economic future” by guaranteeing tariff-free access to the two markets that buy more made-in-America manufactured goods than the next 12 largest export markets combined.

Arizona’s trade ties

For Arizona, the stakes of the USMCA review are disproportionately high. The state’s economy is deeply integrated with its North American neighbors, particularly Mexico, which consistently ranks as Arizona’s top trading partner.

“Not only does USMCA help solidify North America’s economic power, but it should also serve as an example globally of how tariff-free trade can contribute to economic growth,” said Danny Seiden, president and CEO of the Arizona ˿Ƶ of Commerce & Industry. “Arizona benefits from predictable, rules-based, tariff-free trade. We should be doing all we can to live up to the letter and spirit of USMCA.”

Recent data underscores the vitality of these trade relationships. In 2024, Arizona exports to Mexico reached approximately $9.0 billion, accounting for over a quarter of the state’s total exports to the world. Meanwhile, Canada remains Arizona’s second-largest export destination, purchasing roughly $3.0 billion in Arizona goods annually.

The coalition letter notes that nationwide, more than 13 million American jobs depend on trade with Canada and Mexico. In Arizona, these trade flows support sectors ranging from aerospace and electronics to fresh produce and mining.

˿Ƶs across state supportive of USMCA

The letter to Ambassador Greer featured a strong showing communities both urban and rural. In addition to the Arizona ˿Ƶ, signatories included the Greater Phoenix ˿Ƶ, ˿Ƶ of Southern Arizona, Tucson Metro ˿Ƶ, and the West Valley ˿Ƶ of Commerce Alliance.

Rural and regional representation was also significant, with signatures from the Nogales-Santa Cruz County ˿Ƶ of Commerce, which is located at the heart of the fresh produce trade corridor, as well as chambers from Yuma County, Lake Havasu, the Bullhead Area, Kingman, and Flagstaff.

Preparing for 2026 review

The upcoming “joint review” is a unique feature of the USMCA. The three nations must confirm in writing whether they wish to extend the agreement. If one party objects, it could trigger a period of annual reviews and create uncertainty for businesses that rely on long-term planning.

The coalition argues that the agreement is vital for small and medium-sized businesses, noting that more than 100,000 such U.S. businesses sell their goods and services to Canada and Mexico.

“The case for maintaining this agreement is strong,” the letter states. “We look forward to working closely with you to preserve these benefits over the course of the joint review.”

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Phoenix Suns showcase global ambition with preseason games in Macao /2025/11/20/phoenix-suns-showcase-global-ambition-with-preseason-games-in-macao/?utm_source=rss&utm_medium=rss&utm_campaign=phoenix-suns-showcase-global-ambition-with-preseason-games-in-macao /2025/11/20/phoenix-suns-showcase-global-ambition-with-preseason-games-in-macao/#respond Thu, 20 Nov 2025 13:12:49 +0000 /?p=18065 The Phoenix Suns are more than a hometown favorite – they are a global sensation. Last month, the Suns took a historic trip to Macao for two preseason matchups against the Brooklyn Nets, a major milestone in the franchise’s long-term strategy to expand its footprint across Asia and strengthen the global presence of Arizona’s original […]

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The Phoenix Suns are more than a hometown favorite – they are a global sensation. Last month, the Suns took a historic trip to Macao for two preseason matchups against the Brooklyn Nets, a major milestone in the franchise’s long-term strategy to expand its footprint across Asia and strengthen the global presence of Arizona’s original professional sports franchise. 

The trip, as part of the 2025 NBA China Games, was two years in the making. The effort included six international trips involving Suns players, staff, and alumni and more than 750,000 miles traveled as the organization worked to build relationships, host community events, and deepen ties with fans throughout the region.  

Nearly 200 people traveled with the Suns delegation to Macao this fall, including team personnel and more than 50 corporate partners representing major organizations such as Annexus, Banner Health, Bell Bank, Fry’s Food Stores, KIA, Mountain America Credit Union, Southern Glazer’s Wine & Spirits, Ticketmaster, and others. 

Positioning Arizona’s NBA franchise on the global stage 

For the Suns, the Macao games were a critical part of the organization’s vision to elevate the franchise into a premier global sports brand that reflects both the competitiveness of the NBA and the economic dynamism of Arizona. Asia represents one of the world’s most passionate and fast-growing basketball markets, and the Suns’ multi-year investment in the region aims to forge a durable, strategic relationship with new fans and corporate partners alike. 

The reception in Macao underscored the impact of that work. Suns-branded events drew crowds of thousands, local celebrities engaged in team activations, and the franchise rolled out exclusive merchandise collaborations that blended basketball culture with local fashion and music. Suns players also served as ambassadors off the court, participating in youth clinics and meet-and-greets that emphasized the community-driven ethos the team hopes will resonate globally. 

A full slate of activities 

In Macao, the Suns executed a full slate of fan engagements and community initiatives designed to strengthen the team’s identity abroad and serve as a case study in how professional sports franchises can create international value. 

The trip featured events including a Special Olympics clinic led by Devin Booker, who ran drills with local athletes and surprised participants with pairs of his signature Book 1 sneakers.  At NBA House, more than 7,500 fans visited the “Suns Up” activation, enjoying gaming lounges, giveaways, autograph sessions, and meet-and-greets with players Jalen Green and Ryan Dunn. The team also hosted a four-day Suns Pop-Up in historic Macao, offering an NBA 2K lounge, jersey displays, exclusive merchandise created with Mitchell & Ness and Chinese rapper MaSiwei’s brand A Few Good Kids, and appearances from MaSiwei, designer Jeff Hamilton, Suns alumni Rex Chapman and Shawn Marion, and current Suns players Rasheer Fleming and Koby Brea. 

A win for Arizona’s sports economy 

The Suns’ international efforts align with Arizona’s broader economic strategy to strengthen its global reach, build international partnerships, and elevate the state’s visibility as a hub for sports, tourism, and business.  

For example, Sky Harbor International Airport will soon feature nonstop service between Taipei and Phoenix on Starlux Airlines and China Airlines, adding to the airport’s international nonstop destinations in Europe, Canada, and Mexico.  

For corporate partners, the Macao games served as a rare platform to engage with international consumers, deepen brand exposure, and explore cross-border business relationships in one of the world’s most dynamic markets. 

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Tomato tariffs threaten consumer prices as Commerce Dept. eyes end of import agreement /2025/04/22/tomato-tariffs-threaten-consumer-prices-as-commerce-dept-eyes-end-of-import-agreement/?utm_source=rss&utm_medium=rss&utm_campaign=tomato-tariffs-threaten-consumer-prices-as-commerce-dept-eyes-end-of-import-agreement /2025/04/22/tomato-tariffs-threaten-consumer-prices-as-commerce-dept-eyes-end-of-import-agreement/#respond Tue, 22 Apr 2025 17:48:50 +0000 /?p=17875 The United States Commerce Department recently announced its intent to withdraw from the 2019 agreement suspending the antidumping investigation on fresh tomatoes imported from Mexico, a decision that will take effect in July. The move will replace the current deal—which established minimum pricing for imports—with a 20.91% duty imposed on most Mexican tomato shipments. Nogales, […]

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The United States Commerce Department recently announced its intent to withdraw from the 2019 agreement suspending the antidumping investigation on fresh tomatoes imported from Mexico, a decision that will take effect in July. The move will replace the current deal—which established minimum pricing for imports—with a 20.91% duty imposed on most Mexican tomato shipments.

Nogales, Ariz. is one of the country’s leading entry points for fresh tomato imports. 

U.S. officials argue that termination is necessary to protect domestic tomato growers, but the decision threatens to disrupt a longstanding trade structure that has provided American consumers with an affordable supply of fresh tomatoes year-round.

Arizona Gov. Katie and Hobbs and the Arizona-Mexico Commission say the tariffs will harm U.S. consumers.

“Consumers may see prices spike as much as 50%, with Arizona losing up to $3 billion, if the U.S. Department of Commerce imposes tariffs on Mexican tomatoes,” the AMC in a statement.

With Mexico’s favorable climate and lower production costs, growers there are able to meet consistent year-round demand—a role that most U.S. producers are unable to match due to the climate. The removal of the agreement and the imposition of steep tariffs is expected to lead to higher prices, a cost that will likely be borne by American consumers.

Without the suspension agreement, there will no longer be a set minimum price for the imports, leading to greater instability in U.S. market prices. Because tomatoes are perishable and seasonal their pricing is especially volatile.

If no new agreement is reached before the July deadline, shoppers will face the fallout. Though the tariffs may benefit tomato growers in states like Florida, they risk sparking consumer backlash as inflation-weary households contend with rising food costs.

In a statement, the Nogales-based Fresh Produce Association of the Americas said, “Members of the Fresh Produce Association of the Americas are U.S. companies that have led innovation in the tomato category over the last 30 years. Because of this innovation, consumers now can shop for a wide array of vine-ripened grape and cherry tomatoes, tomatoes on the vine, roma tomatoes, and other specialty tomatoes.  With the pending termination of the Tomato Suspension Agreement and implementation of duties, those same U.S. companies are left to wonder if they can continue to supply consumers with the vine-ripened tomatoes people demand at affordable prices.”

FPAA President Lance Jungmeyer that consumers will bear the brunt of any new tariffs.

“This price has to be passed on,” he said. “It can’t be charged back to the grower or anything. A lot of companies that have year-round contracts are going to be renegotiating those in order to make sure they can fill those contracts. As a result, retailers are going to have to raise prices. Restaurants are going to have to raise prices or adjust menu output, for example, by putting fewer tomatoes on a salad or fewer slices on a sandwich.”

The U.S. is Mexico’s top agricultural trade partner, exporting $18 billion worth of products, which represents about 70 percent of Mexico’s agri-food imports. The agriculture sector is critical to the overall two-way goods and services trade between our two countries that supports an estimated five million U.S. jobs.

The 2019 agreement was designed to ensure free trade between the nations while keeping supply chains consistent. Its termination, framed by the Commerce Department as a protective measure, could disrupt a vital agricultural agreement and further inflation.

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USMCA partners skirt new tariffs, but business leaders still anticipate negative economic consequences /2025/04/03/usmca-partners-skirt-new-tariffs-but-business-leaders-still-anticipate-negative-economic-consequences/?utm_source=rss&utm_medium=rss&utm_campaign=usmca-partners-skirt-new-tariffs-but-business-leaders-still-anticipate-negative-economic-consequences /2025/04/03/usmca-partners-skirt-new-tariffs-but-business-leaders-still-anticipate-negative-economic-consequences/#respond Thu, 03 Apr 2025 18:35:19 +0000 /?p=17858 Arizona ˿Ƶ of Commerce & Industry President and CEO Danny Seiden says the new reciprocal tariffs announced by President Donald Trump risk driving up manufacturing costs in the United States and will likely result in higher prices on American consumers. “Tariffs are taxes on imports, and they show up on your final bill at the […]

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Arizona ˿Ƶ of Commerce & Industry President and CEO Danny Seiden says the new reciprocal tariffs announced by President Donald Trump risk driving up manufacturing costs in the United States and will likely result in higher prices on American consumers.

“Tariffs are taxes on imports, and they show up on your final bill at the cash register,” Seiden said. “When importers can’t absorb new costs, they pass them along to their customers.”

In a Rose Garden ceremony yesterday, the president announced new tariffs on dozens of international trade partners. A near universal baseline tariff of 10% will be applied to global imports, as well as an additional country-by-country tariff.

For example, the European Union will be hit with a 20% U.S. tariff rate, with 45% for Vietnam, 24% for Japan, and 25% for South Korea.

USMCA dodges bullet

New tariffs will not be applied to Canada and Mexico, the U.S.’ partners in the United States-Mexico-Canada Agreement (USMCA), the North American Free Trade Agreement successor accord that was negotiated in the first Trump administration.

A 25% tariff announced in March on goods that are not compliant with USMCA content rules but that are still imported from Canada and Mexico will remain, as will a new tariff on steel and aluminum imported from those countries.

“The March tariffs caused their own disruptions, so I’m glad we’re not hitting our friends and neighbors with new tariffs,” Seiden said. “Not only does USMCA help solidify North America’s economic power, but it should also serve as an example globally of how tariff-free trade can contribute to economic growth.”

Manufacturers react

U.S. manufacturers are bracing for the fallout from Wednesday’s announcement as they prepare both for higher costs of imported inputs in the domestic manufacturing process, but also for less receptive foreign markets as a tit-for-tat trade war gets underway.

“The stakes for manufacturers could not be higher. Many manufacturers in the United States already operate with thin margins. The high costs of new tariffs threaten investment, jobs, supply chains and, in turn, America’s ability to outcompete other nations and lead as the preeminent manufacturing superpower,” National Association of Manufacturers President and CEO Jay Timmons said.

Rather than engage in a tariff-for-tariff battle, Timmons said the U.S. should secure better terms for manufacturers by negotiating ‘zero-for-zero’ tariffs for American-made products in trading partners’ markets. “That means they don’t charge us, and we don’t charge them,” Timmons said.

Reacting to the new import taxes, the Dow Thursday morning plunged more than 1,200 points and the Nasdaq was down 4%.

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How leaders in Arizona and beyond reacted to tariff pause /2025/02/04/how-leaders-in-arizona-and-beyond-reacted-to-tariff-pause/?utm_source=rss&utm_medium=rss&utm_campaign=how-leaders-in-arizona-and-beyond-reacted-to-tariff-pause /2025/02/04/how-leaders-in-arizona-and-beyond-reacted-to-tariff-pause/#respond Tue, 04 Feb 2025 18:13:07 +0000 /?p=17771 President Trump last Saturday announced his plan to impose 25% tariffs on imported goods originating in Canada and Mexico, the United States’ trade partners in the USMCA free trade agreement. The White House cited each country’s failure to prevent illegal immigration and fentanyl smuggling as justification for the tariffs. Yesterday, however, the White House announced […]

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President Trump last Saturday announced his plan to impose 25% tariffs on imported goods originating in Canada and Mexico, the United States’ trade partners in the USMCA free trade agreement. The White House cited each country’s failure to prevent illegal immigration and fentanyl smuggling as justification for the tariffs. Yesterday, however, the White House announced the tariffs would be paused for 30 days. 

The reaction to the tariff announcement from Gov. Hobbs

Mexico and Canada announced pause

Mexican President Claudia Sheinbaum on Monday said her government had reached an agreement with the Trump administration to stay the tariffs.

Later in the day Canadian Prime Minister Justin Trudeau announced a similar agreement. 

Both leaders agreed to send approximately 10,000 additional personnel to reinforce border security. Trudeau also made a commitment to labeling cartels as terrorists. 

Business community reaction

The deal announcement was met with encouragement from the Arizona ˿Ƶ of Commerce & Industry. 

Likewise, the U.S. ˿Ƶ of Commerce welcomed the pause.

Both delays are in place for 30 days. Until that point President Trump has committed to negotiate deals with both leaders to avoid the tariffs completely. 

Congressional delegation weighs in

Arizona Rep. Juan Ciscomani (R), whose district encompasses most of southeastern Arizona, cheered the announcement of the deal. 

Rep. Greg Stanton (D), whose district includes portions of Phoenix and the East Valley, led a over the weekend to the White House calling for the planned tariffs to be rescinded. On Monday he said the White House “backpedaled.”

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Explainer: The role of tariffs in international trade and their effects /2025/01/27/explainer-the-role-of-tariffs-in-international-trade-and-their-effects/?utm_source=rss&utm_medium=rss&utm_campaign=explainer-the-role-of-tariffs-in-international-trade-and-their-effects /2025/01/27/explainer-the-role-of-tariffs-in-international-trade-and-their-effects/#respond Mon, 27 Jan 2025 17:38:58 +0000 /?p=17763 Throughout the presidential campaign, candidate Donald Trump said he planned to impose steep tariffs on imports, including on goods originating in Mexico and Canada, the United States’ trading partners in USMCA, the trade agreement adopted in Trump’s first term that replaced the North American Free Trade Agreement.  In his first week in office, the new […]

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Throughout the presidential campaign, candidate Donald Trump said he planned to impose steep tariffs on imports, including on goods originating in Mexico and Canada, the United States’ trading partners in USMCA, the trade agreement adopted in Trump’s first term that replaced the North American Free Trade Agreement. 

In his first week in office, the new president issued a to several agencies calling for a thorough review of United States trade laws, trade agreements, the trade deficit, and other trade-related issues. 

According to the memo, reports from the affected departments to the White House are due April 1, but the president told reporters last week new tariffs on China, Mexico, and Canada could begin as soon as February 1. 

What is a tariff?

A tariff is a tax imposed by a government on goods and services imported into a country. Tariffs are designed to increase the cost of imported goods, making them less competitive against domestic products. This policy tool is often used to protect domestic industries, generate government revenue, or respond to unfair trade practices. President Trump has proposed using tariffs as a cudgel against policies he opposes, such as Mexico’s immigration control policies. 

Following Colombia’s refusal to accept military planes carrying deportees last weekend, President Trump threatened to impose tariffs on Colombian imports like coffee. Colombia reversed course and agreed to accept the planes, prompting the U.S. to drop the planned tariffs.

How does a tariff differ from a duty?

While tariffs and duties are often used interchangeably, there are slight distinctions:

  • A tariff refers to the overall tax policy applied to imported goods.
  • A duty is the specific amount of tax or fee assessed on a particular item under that tariff policy. In essence, duties are the implementation of tariff rules. Travelers returning home from a foreign trip, for example, might pay a duty on merchandise they purchased abroad. 

Where in the process of trade is a tariff assessed?

Tariffs are typically assessed at the point of entry when goods arrive at a country’s border. Importers are responsible for declaring the value and quantity of goods, after which customs authorities calculate and apply the tariff. 

Who pays tariffs?

The importer pays the tariff at the time of entry. However, the cost is usually passed down the supply chain, ultimately reaching consumers in the form of higher prices for imported goods or products containing imported components. Higher prices also result from reduced inventories and selection.

President Trump argues that foreign countries pay the cost of tariffs. 

What is a retaliatory tariff?

A retaliatory tariff is a tax imposed by one country in response to tariffs levied by another country. This type of tariff is part of trade disputes and is meant to exert economic pressure by targeting goods from the other nation, often focusing on politically or economically significant industries. 

Chyrstia Freeland, Canada’s lead USMCA negotiator and a potential replacement of Justin Trudeau as party leader and prime minister, in a wrote, “If President Trump imposes 25 per cent tariffs, our counterpunch must be dollar-for-dollar — and it must be precisely and painfully targeted. Florida orange growers, Michigan dishwasher manufacturers and Wisconsin dairy farmers: brace yourselves.” 

The threat of tit-for-tat tariffs has heightened concern among U.S. manufacturers and growers that their products will be less competitive in foreign markets and will lead to domestic job losses. 

Do tariffs lead to higher consumer prices?

Tariffs generally lead to higher consumer prices because the additional cost imposed on imports is passed down the supply chain.

  •  Imported items become more expensive due to the tariff.
  • Domestic producers may increase prices if competition from imports diminishes. The extent of price increases depends on how easily consumers can switch to alternatives.

Wouldn’t new tariffs by the U.S. on goods from Mexico and Canada violate USMCA?

If the Trump administration increases any tariffs on USMCA partners, except due to national security concerns, it will the terms of the agreement under Article 2.4. 

What are the most common items imported by the U.S. from Mexico?

  •  Automobiles and automotive parts
  • Electronics and machinery (e.g., TVs, refrigerators)
  •  Agricultural products. For example, tomatoes, berries, and more fresh produce is imported through Arizona ports of entry, especially the Mariposa Port of Entry in Nogales, ensuring fresh produce is available at a competitive price in grocery store produce sections even in the wintertime.
  • Medical devices and pharmaceuticals
  • Oil and fuel products

What are the most common items imported by the U.S. from Canada?

  • Crude oil and refined petroleum products
  •  Vehicles and automotive parts
  • Lumber and wood products
  •  Aluminum and steel
  •  Agricultural goods (e.g., wheat, pork)

The business community view

Arizona ˿Ƶ of Commerce & Industry President and CEO Danny Seiden: “We are confident that President Trump will negotiate smart trade agreements with our largest trading partners and that he’ll stick to his goal to lower prices for American consumers.” 

National Association of Manufacturers President and CEO Jay Timmons: “The United States, Canada and Mexico—because of the USMCA that was negotiated and implemented a few years ago—has the opportunity to take on together some actions to thwart problematic, market-distorting practices that are coming out of other countries, specifically China.” U.S. ˿Ƶ of Commerce President and CEO Suzanne Clark told: “They are, in fact, a tax — they are paid by consumers and manufacturers and they would draw retaliation that could hurt our farmers.”

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˿Ƶs of commerce say USTR backtracking on digital trade, risking digital protectionism /2024/06/19/chambers-of-commerce-say-ustr-backtracking-on-digital-trade-risking-digital-protectionism/?utm_source=rss&utm_medium=rss&utm_campaign=chambers-of-commerce-say-ustr-backtracking-on-digital-trade-risking-digital-protectionism /2024/06/19/chambers-of-commerce-say-ustr-backtracking-on-digital-trade-risking-digital-protectionism/#respond Thu, 20 Jun 2024 03:10:11 +0000 /?p=17473 The Arizona ˿Ƶ of Commerce & Industry and the U.S. ˿Ƶ of Commerce joined more than 150 state and local chambers, including 13 from Arizona, in calling on the White House to reverse course and support digital trade rules approved by Congress in previous trade agreements. “Digital trade supports more than three million American jobs. […]

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The Arizona ˿Ƶ of Commerce & Industry and the U.S. ˿Ƶ of Commerce more than 150 state and local chambers, including 13 from Arizona, in calling on the White House to reverse course and support digital trade rules approved by Congress in previous trade agreements.

“Digital trade supports more than three million American jobs. Companies in diverse fields including services, manufacturing, arts and entertainment, and agri-business increasingly rely on the digital economy to find customers, sell goods and services, manage operations, coordinate research and development, strengthen compliance, and ensure secure payments,” the letter says.

“Over the years, the U.S. and its allies have negotiated agreements—including the United States-Mexico-Canada Agreement (USMCA)—to support mutually beneficial cross-border data flows and to defend against digital protectionism. These agreements protect American companies from unfair treatment.”

Reversing course at WTO

The U.S. Trade Representative at a meeting of the World Trade Organization last fall reversed previously held U.S. policy positions on digital trade, a move seen as a win for activists and policymakers who call for a heavier regulatory hand over the tech industry.

The U.S. had previously called for policies that encouraged the free, cross-border flow of data used by the private sector, and that would prevent countries from requiring firms to transfer software source codes or from discriminating against U.S.-made digital goods.

USTR Katherine Tai at the WTO meeting reversed course, however.

Opponents on the Hill

Business groups and some on Capitol Hill have expressed deep skepticism over USTR’s moves, including Senate Finance Committee Chairman Ron Wyden (D-OR).

“USTR’s decision to walk away from the negotiating table in Geneva is a win for China, plain and simple,” Wyden last October following USTR’s announcement. “In addition to abandoning our democratic allies in these negotiations, USTR is leaving a vacuum that China—an active participant in these negotiations–will be more than pleased to fill. USTR’s action today is a win for the Chinese government’s efforts to have unlimited access to U.S. data, a win for Chinese tech giants who want to bully smaller countries into following the Chinese model of internet censorship, and a win for China’s Great Firewall, which locks out American companies and locks Chinese citizens into a repressive regime of government surveillance.”

Canada digital services tax

Also under the microscope is a digital services tax expected to be passed in the Canadian Senate this month.

According to the Computer & Communications Industry Association, Canadian Bill C-59 would impose a digital services tax of 3% on revenues from online marketplaces, online advertising, social media, and user data services. The DST would disproportionately harm U.S. businesses, costing U.S. businesses between $0.9 billion and $2.3 billion annually.

In a June 10 to Tai, the U.S. ˿Ƶ called on the Biden administration to seek relief via the dispute mechanisms under USMCA.

“Now that Canada is poised to pass this legislation, in the face of broad U.S. opposition, it is clear that a more robust response is called for—a response reliant on the trade tools you recently endorsed,” the U.S. ˿Ƶ said. “Specifically, we urge USTR to initiate formal dispute settlement procedures with Canada, beginning with consultations under the U.S.-Mexico-Canada Free Trade Agreement (USMCA).”

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Phoenix Sky Harbor International welcomes Air France /2024/05/28/phoenix-sky-harbor-international-welcomes-air-france/?utm_source=rss&utm_medium=rss&utm_campaign=phoenix-sky-harbor-international-welcomes-air-france /2024/05/28/phoenix-sky-harbor-international-welcomes-air-france/#respond Wed, 29 May 2024 02:42:41 +0000 /?p=17421 The Valley of the Sun is now linked to the City of Lights with a new nonstop flight. Phoenix Sky Harbor International Airport last Thursday welcomed the inaugural nonstop Air France flight from Paris.  Dozens of aviation enthusiasts were on hand to watch the Air France Boeing 787-9 Dreamliner’s arrival.  The flight will run three […]

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The Valley of the Sun is now linked to the City of Lights with a new nonstop flight.

Phoenix Sky Harbor International Airport last Thursday welcomed the inaugural nonstop Air France flight from Paris. 

Dozens of aviation enthusiasts were on hand to watch the Air France Boeing 787-9 Dreamliner’s arrival. 

The flight will run three times a week, offering a mix of Business, Premium Economy, and Economy seats.

Air France celebrates inaugural nonstop roundtip PHX-CDG flight.

A strategic investment

At ribbon-cutting at Terminal 4, Phoenix Vice Mayor Deb Stark emphasized the economic benefits of this new route. 

“Air France’s investment in Phoenix, bringing the first-ever nonstop service to France, signifies a strong vote of confidence in our city’s potential,” she said. The partnership is projected to generate an annual economic impact of approximately $69 million.

This new service also shows Phoenix’s position as a key player in international business and tourism. French businesses have already recognized Arizona’s potential, with more than 80 French companies established in the region, spanning sectors from mining and electronics to biotechnology and renewable energy.

Phoenix City Councilman Kevin Robinson speaks at the press conference welcoming to Air France to Phoenix Sky Harbor. Phoenix Aviation Director Chad Makovsky on right.
Air France’s Boeing Dreamliner prepares to land at Phoenix Sky Harbor on the airline’s first flight to the Valley of the Sun.

Commitment to sustainability

Air France’s choice of the Boeing 787-9 Dreamliner for this route shows the airline’s commitment to sustainability. 

The Dreamliner is known for its reduced carbon footprint and quieter operations, aligning with community health and safety priorities. 

“We are proud to offer one of the most environmentally friendly aircraft in the industry,” said Boaz Hulsman, the vice president of commercial North America for Air France. “This aircraft emits 20% less CO2 and produces less noise compared to other planes of similar size.”

The inaugural flight crew for the PHX-CDG nonstop flight prepares for departure.

Strengthening economic connections

The introduction of this route improves tourism and helps to strengthen economic ties between Arizona and France. Phoenix now has direct access to Air France’s huge network, including 180 destinations worldwide. This connectivity is expected to facilitate increased business exchanges and investment opportunities.

During the event, it was highlighted that France is the largest source of foreign direct investment (FDI) in Europe, and this new route will help to enhance Phoenix’s attractiveness to French investors. A recent delegation to Paris, which included representatives from the Arizona  Office of Tourismand the Greater Phoenix Economic Council, shows the city’s approach to improving international business relationships.

The new route also promises to improve cultural exchanges between Phoenix and France. Arizona ranks fifth in the U.S. for French tourists, drawn by the state’s natural beauty and unique attractions.

The high demand for the inaugural flight, which had a 97% load factor, is a promising indicator of the route’s success. Originally planned to be a seasonal route, it’s already been extended through the winter.

“This strong demand underscores the community’s support and the mutual benefits of this new service,” Air France’s Hulsman said.

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Four years into accord, USMCA leaders gather in Phoenix  /2024/05/21/four-years-into-accord-usmca-leaders-gather-in-phoenix/?utm_source=rss&utm_medium=rss&utm_campaign=four-years-into-accord-usmca-leaders-gather-in-phoenix /2024/05/21/four-years-into-accord-usmca-leaders-gather-in-phoenix/#respond Tue, 21 May 2024 18:20:42 +0000 /?p=17407 The lead international trade negotiators from the United States, Mexico, and Canada are in Phoenix this week as their trilateral trade accord, the United States-Mexico-Canada Agreement, or USMCA, nears its fourth anniversary.  Who’s in town? The United States will be represented by U.S. Trade Representative Katherine Tai. Mary Ng, the minister of export promotion, international […]

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The lead international trade negotiators from the United States, Mexico, and Canada are in Phoenix this week as their trilateral trade accord, the United States-Mexico-Canada Agreement, or USMCA, nears its fourth anniversary. 

Who’s in town? The United States will be represented by U.S. Trade Representative Katherine Tai. Mary Ng, the minister of export promotion, international trade and economic development, will represent Canada, while Economy Secretary Raquel Buenrostro will represent Mexico. 

What’s on the agenda? According to the USTR’s office, Tai will meet with both Ng and Buenrostro today. Tomorrow, Tai will serve as host of the fourth USMCA Free Trade Commission meeting. 

The three leaders will also hold a meeting with the tomorrow. 

The big issues: The meeting comes following the Biden administration’s announcement that it would impose a 102.5% tariff on Chinese-made electric vehicles. Chinese automakers are eyeing Mexico for greater investment and access to the Americas, but U.S. policymakers are wary, wanting to ensure that China doesn’t use USMCA to gain tariff-free entry to the U.S. 

While his trade minister is in Phoenix, Canadian Prime Minister Justin Trudeau will speak to the convention of the Service Employees International Union in Philadelphia.  

Trudeau so far hasn’t taken the same hardline on Chinese EV imports, saying only last week, “Obviously we’re watching closely what our closest trading partner in the United States is doing.” 

Squabbles: The three countries have had their share of squabbles in the relatively short life of USMCA. Mexico wants to block the import of genetically modified corn from the U.S., and the U.S. says Mexico has failed to sufficiently open its energy sector. Meanwhile, Canada and Mexico say the U.S. has improperly interpreted USMCA’s rules on automotive content and labor.  

Almost time for review: The three member nations in 2026 must confirm in writing whether they want to continue the agreement. If just one member objects, it will kick off a series of annual reviews that will end only when all three countries are satisfied. Failure to achieve each country’s sign-off would mean that the agreement would terminate at the end of year 16.  

The business community view: Arizona ˿Ƶ of Commerce & Industry President and CEO Danny Seiden says he hopes the three trade leaders double down on their commitment to preserve USMCA as it nears its first review and that they discuss the importance of ensuring fresh produce from Mexico, including tomatoes, can continue to be imported into the U.S. tariff- and duty-free. 

“We should be doing all we can to live up to the letter and spirit of USMCA,” Seiden said.
“Unfortunately, special interests in Florida are calling for the Biden administration to hit tomatoes entering the U.S. from Mexico with a big tariff. It’s rank protectionism. U.S. shoppers pay the price, while the Arizona jobs that depend on tomato imports are put in jeopardy.” A 2023 from Arizona State University said more than 20,000 Arizona jobs are at risk if new tariffs were to be imposed on imported Mexican fresh tomatoes. 

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