Xinhua
27 Feb 2025, 08:16 GMT+10
"People are working at margins that are so low that absorbing that kind of added cost will be impossible. It's going to have to be passed along," said Allison Moore, executive vice president of the Fresh Produce Association of the Americas.
SACRAMENTO, the United States, Feb. 26 (Xinhua) -- U.S. western states will face disproportionate harm after President Donald Trump confirmed Monday that his 25-percent tariffs on imports from Mexico and Canada will start next month.
"These tariffs that Trump is threatening to impose on Canada and Mexico will only hurt our hard-working Americans," said Sarah Benatar, Coconino County treasurer in Arizona, according to Cronkite News, a multiplatform news organization.
"Just the threat alone and that uncertainty is really causing chaos across the state," Benatar noted.
The Peterson Institute for International Economics estimates that Trump's tariffs would cost the average U.S. household 1,200 U.S. dollars per year.
In Arizona, where fresh produce from Mexico is a staple, consumers will feel the pinch immediately.
Mexico represents 39 percent of all imported fruits and vegetables consumed in North America annually. Nogales, Arizona is the largest port of entry for produce grown in Mexico and facilitates nearly 5 billion pounds and 3 billion dollars worth of fruits and vegetables through its port each year, according to the Fresh Produce Association of the Americas (FPAA), which was founded in Nogales in 1944.
"People are working at margins that are so low that absorbing that kind of added cost will be impossible. It's going to have to be passed along," Allison Moore, executive vice president of the FPAA, was quoted as saying by Cronkite News.
According to the Arizona Office of Tourism, the tariffs also threaten Arizona's tourism industry, which generated 2.6 billion dollars in state and local tax revenue in 2023.
California could face a double impact through both consumer prices and gasoline costs. The state has already seen gas prices rise 18 cents in the past week to 4.66 dollars per gallon, making it the second-most expensive gasoline market after Hawaii.
The economic uncertainty is already affecting consumer confidence. The University of Michigan's latest survey showed that U.S. consumer sentiment declined in February for the second consecutive month, down by a steep 10 percent from January.
In Nevada, the impacts could be significant beyond direct imports. Jeremy Aguero, a principal analyst at Applied Analysis -- an economic, fiscal and policy research firm based in Las Vegas, Nevada -- warns the state's tourism-dependent economy is vulnerable to changes in consumer confidence.
"If we put upward pressure on prices, what does that ultimately do to the economy as a whole, in a consumer-dependent economy like that in the state of Nevada?" Aguero told the Nevada Independent.
U.S. exporters also face significant risks from retaliatory tariffs. North Dakota (88.2 percent), New Mexico (73.6 percent) and South Dakota (65.6 percent) have the highest percentage of their exports going to Canada and Mexico, according to LendingTree's analysis, making them particularly vulnerable to counter-tariffs.
Kevin Moffitt, former president and CEO of the Pear Bureau Northwest, noted the potential damage to U.S. fruit exporters.
"I would estimate that these two countries have imported 90 percent of the fresh pears shipped outside of the United States this season to date," he told Fruitnet. "So a heavy counter-duty on pears from Mexico and/or Canada would be concerning to the industry."
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