Trump's tariff standoff looms big in Arizona, whose biggest international trading partner is Mexico

Arizona and Mexico have a trade relationship valued at $20 billion annually.

Published: February 3, 2025 11:07pm

(The Center Square) -

President Donald Trump’s 25% tariffs on Mexico, which on Monday were halted for the next month, triggered mixed reactions in Arizona, as Mexico is the state’s biggest international trading partner.

Trump and Mexican President Claudia Sheinbaum Pardo reached an agreement in which Mexico would send 10,000 troops to the border in exchange for halting the tariffs for another month. 

In a post to Truth Social, Trump said “it was a very friendly conversation.” Proponents of the tariffs on the country say it’s a necessary step to stop the flow of illicit fentanyl in the United States by forcing cooperation, whereas opponents argue it is a needless economic conflict.

Arizona and Mexico have a trade relationship valued at $20 billion annually, according to local radio station KJZZ-FM. Much of that trade focuses on agriculture and food, with much of that ending up on kitchen shelves across the U.S.

Arizona Senate President Warren Petersen told The Center Square that he trusts Trump’s judgment on the tariffs on Mexico and the subsequent negotiations.

“Tariffs are being used as a tool by President Trump to achieve economic and political outcomes that are in the best interests of America, not only to help stop the flow of dangerous criminal illegal immigrants and deadly fentanyl into the U.S but to put Americans first,” he said.

“Arizona is ground zero for this open border chaos that has cost our state $3 billion in taxpayer dollars annually. Any costs passed onto Americans will be miniscule in the grand scheme and will be offset by his energy and fiscal policies that will bring gas prices and utility prices down, as well as the cost of American goods. I see the tariffs as a tool to enact positive changes."

Canadian tariffs were also paused after Trump and Canadian Prime Minister Justin Trudeau talked on Monday, with Trudeau saying in an X post that “Nearly 10,000 frontline personnel are and will be working on protecting the border.” The northern neighbors are Arizona’s second most prominent trading partner.

Earlier this week, Democrat Gov. Katie Hobbs voiced concern about tariffs and the potential impacts on the costs of consumer goods, dubbing them a “tax.”

“These new taxes threaten to hike grocery and gas prices," she said. "They threaten to increase the cost of housing. And they threaten critical Arizona industries that employ tens of thousands of people, including semiconductor manufacturing, agriculture, and the clean energy economy.

“They’re bad for families and they’re bad for business. I hope the president will reconsider this hasty action that could have a devastating impact on our state’s economy."

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