Arizona companies are once again bracing for impact after President Donald Trump’s new 25% tariffs on imports took effect Tuesday.Canada and China quickly announced retaliatory tariffs against the U.S.Trump has promoted the tariffs as part of a wider strategy to revive American manufacturing, and as a way to extract concessions from the U.S.’ trading partners, adversaries and allies alike.”No room left for Mexico or Canada,” Trump said Monday in the White House’s Roosevelt Room. “The tariffs, they are all set. They’re going into effect tomorrow.”Here are answers to commonly asked questions about the tariffs.Why does Trump want tariffs on Canada and Mexico?Trump’s threats to place tariffs on Canada and Mexico have focused on stopping the flow of fentanyl into the United States. He has argued neither country is doing enough to address the issue.The president originally had announced he would impose the tariffs in early February, but he delayed them by a month after both countries offered concessions.Trump hasn’t laid out many specific demands beyond that. The idea of taxing Canada in particular left some analysts scratching their heads considering that country plays a minimal role in the flow of the drug across North American borders.Trump says his tariffs are already paying economic dividends: Also on Monday, Trump announced a $100 billion investment in Arizona by Taiwan Semiconductor Manufacturing Company.What tariffs have taken effect?The Trump administration has placed a 25% tariff on most imports from Canada and Mexico, with a 10% tax on Canadian energy imports such as natural gas and oil, and raised a tariff on some Chinese goods to 20% from 10%.When do the tariffs go into effect?The tariffs took effect just after midnight Eastern time on Tuesday, or about 10 p.m. Monday in Arizona.How will the tariffs affect Arizona?Tariffs were expected to generate both winners and losers in Arizona.On one hand, some in the business community have worried about the long-term impact that tariffs could have on Arizona, a border state.The promise of open trade with Mexico — enshrined in America’s trade agreements with its southern neighbor — has been one of Arizona’s selling points when enticing companies to do business here. It has attracted manufacturers, particularly in the auto and aerospace sectors, who frequently ship parts back and forth across the border multiple times when assembling products.On the other hand, tariffs can be quite positive for companies that already lean heavily on U.S. supply chains. Plenty of those companies are located in Arizona, including several major semiconductor manufacturers, who have benefitted from both Trump and former President Joe Biden’s efforts to target rival supply chains abroad.Can the tariffs be rolled back?Last month, Trump delayed tariffs on Canada and Mexico shortly before they were scheduled to go into place.He told reporters Monday afternoon that this time around, “they’ll start.”There was “no room left” for either country to make a deal to avoid the tariffs, he said.U.S. Customs and Border Protection, the agency that oversees cross-border trade, sent out a memo on Monday officially informing importers of the tariffs, according to a copy of the letter shared with The Arizona Republic.Which consumer products will get more expensive as a result?Economists generally expect the latest round of tariffs would raise the cost of a range of products, from electronics to agricultural goods.The U.S. relies heavily on imported building materials such as wood, charcoal, aluminum, and steel from Canada, which economists believe could affect the cost of housing and construction.The country also imports lots of fresh produce and food products from Mexico, which could raise prices at the grocery store.The tariffs are also expected to upend the U.S.’ auto manufacturing sector, which depends heavily on cross-border trade.Warren Buffett: Tariffs ‘an act of war, to some degree’Famed investor Warren Buffett criticized Trump’s approach to trade in a televised interview that aired over the weekend, saying tariffs hike the cost of goods in the long run.“Tariffs are actually — we’ve had a lot of experience with them — they’re an act of war, to some degree,” Buffett told CBS News.He joked: “I mean, the Tooth Fairy doesn’t pay ’em.” …
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