President’s Visit Serves As Reminder – Tariffs Tax Arizona

During Arizona Visit Today, President Trump Should Listen to Residents Hurt by His Trade Policies

QUOTE FROM TARIFFS HURT THE HEARTLAND SPOKESMAN BRIAN KUEHL. “Tariffs are causing pain for famiilies, workers, and businesses across Arizona. Prices for everyday goods are going up and families are paying more just to buy essential items like groceries and clothes. At the same time, the cost of doing business is rising while export markets disappear, putting jobs and livelihoods at risk. The trade war needs to end before it causes even more damage to Arizona’s economy.”

ARIZONA AGRICULTURE ‘TENUOUS’ THANKS TO LOW PRICES AND PRODUCT SUPRLUS. “After months of tariffs and trade wars, local experts say Arizona agriculture is being impacted by low prices and uncertainty about the future. Eric Wilkey, president of Arizona Grain, said it’s getting difficult for farmers to find a crop to grow that’s not being impacted by international tariffs. Farmers are starting to lose their patience, he added, as the outlook for the industry is looking more ‘tenuous.’” (Kevin Reagan, “Tariffs Boost Pinal Food Banks While Hurting Growers,” Pinal Central, 10/9/18)

UNIVERSITY OF ARIZONA ECONOMIST: “THIS IS NOT A GOOD SITUATION FOR THE U.S.”: “‘What it will do is not only make our industries less competitive, make domestically produced products more expensive here in the U.S.,’ Hammond said. Hammond says Tucsonans can expect to feel their wallets being a little lighter in about six months as a result of the tariffs making domestic products far more expensive. He also says the agricultural and industrial sectors are expected to feel the impact the most.” (Emily Biehl, “How U.S. Vs. Mexico Trade War Will Affect You,” Tucson News Now, 8/13/18)

ARIZONA DAIRY FARMS ARE SHUTTING DOWN BECAUSE TARIFFS COST $2,000 PER DAY. “[Keith] Murfield says that the new tariffs on dairy exports are placing almost every dairy farm in this state underwater. ‘Oh, absolutely. It is a direct hit. I would say since this tariff went on, it has probably cost an Arizona dairy producer — since June 1 — around $2,000 a day,’ said Murfield. Arizona Dairy farmer Jim Boyle says a 25 percent tariff to ship to Mexico is a deal breaker. ‘Twenty-five percent basically prices American products out of the market in Mexico. So we really struggle to export south of here. Our markets there really dried up over the Summer,’ said Boyle. He says out of 50 Arizona dairy farmers, three have already gone out of business this year and three more will like close down the first of next year. He blames the losses on the new tariffs.” (Nancy Montoya, “Dairymen: Mexico’s Answer to Steel Tariffs Is Devastating Arizona Dairy Farms,” Arizona Public Media, 10/5/18)

CROP PRICES ARE ‘GONNA GO DOWN.’ “China imposes a 7-percent tariff on pecans and all American nuts and now the country is threatening to raise that up to 22 percent. Greg Fonsah is an agriculture economics professor at the University of Georgia. ‘What’s going to happen to the excess? The excess is going to float in the American market,’ Fonsah said. ‘So it’s going to dampen the market and the prices are gonna go down.’ Whether Arizona pecans end up in China or not, the depressed pecan prices would hurt growers here too. ‘It’s true that we might start looking for new markets,’ Fonsah said. ‘If we look for new markets, we don’t know how much quantity they’re going to take, so we’re going to have excess in the U.S.’” (Casey Kuhn, “Arizona Pecan Farmers Grew Record 2017 Crop, Eye Possible New Tariffs,” Fronteras, 7/5/18)

FARM BUREAU: ‘THERE’S NO DOUBT’ TARIFFS WILL HURT ARIZONA: “The agriculture industry in Arizona accounts for $23.3 billion of our state economy, so it’s fairly significant and important. In terms of nationwide, Arizona is important for its diversity. We don’t have a large footprint. Other states don’t have the diversity like we do and the ability to produce food year-round. … The USDA has forecasted in the next ten years our market share in foreign markets are going to drop because other countries are catching up with us in terms of their efficiencies, and we are missing out on some of these trade negotiations. It will hurt us, there’s no doubt.” (“Arizona Farmers Suffer If Trump Passes Tariffs On China,” Arizona PBS, 7/9/18)

NEARLY 770,000 ARIZONA JOBS DEPEND ON TRADE. “Dick Walden is a third-generation pecan farmer in Sahuarita, AZ, where his family owns and operates the sprawling 4,500 acre Green Valley Pecan Farm. He and his fellow Arizona farmers produced more than 28 million pounds of pecans last year alone, a large share of which was sold to customers overseas. Now, with the escalating trade war and ever-present threat of more tariffs, Walden’s business and the state’s entire agricultural industry are at risk. ‘There are many unintended consequences due to the ripple effect of imposing tariffs and then having a tit-for-tat retaliatory tariffs from our trading partners,’ Walden told a local newspaper. ‘I’m greatly concerned.’” (Isabelle Lavin, “’It’s Bad News for Us: ‘Arizona’s Farmers, Manufacturers, Brewers Among Trade War’s Victims,” U.S. Chamber of Commerce, 8/17/18)

STEEL TARIFFS ARE AFFECTING THE PRICE OF EVERYTHING FROM BUILDINGS TO BEER CANS TO AEROSPACE PARTS – ARIZONA’S LARGEST EXPORT, WORTH MORE THAN $2.1 BILLION IN 2017, ACCORDING TO THE U.S. CENSUS BUREAU. “The European Commission said the move to impose tariffs of 25 percent tariff on imported steel and 10 percent on aluminum marked a ‘bad day for world trade.’

Those comments were echoed by Mark Fultz, vice president and general manager of Able Steel Fabricators, who called the imposition of tariffs a ‘lose-lose proposition for us fabricators.’ The Mesa-based company has worked on projects including the spring training facility for the Arizona Diamondbacks and Colorado Rockies, and the Tempe Center for the Arts, among others.

Fultz said the construction industry will either come to a ‘screeching halt’ when customers refuse to pay higher prices tariffs will bring, or subcontractors will be forced to eat the higher cost. He said domestic steel manufacturers already started to increase prices when tariffs were raised on imports from other countries.” (“New Steel, Aluminum Tariffs Worry Arizona Firms,” AZ Big Media, 6/4/18)