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Arizona Gov. Hobbs says Trump tariffs are 'bad for families and they’re bad for business'

Gov. Katie Hobbs delivering the 2025 State of the State Address on the floor of the Arizona House of Representatives at the Arizona State Capitol in Phoenix, Arizona, on Jan. 13, 2025.
Gov. Katie Hobbs delivering the 2025 State of the State Address on the floor of the Arizona House of Representatives at the Arizona State Capitol in Phoenix, Arizona, on Jan. 13, 2025.

Arizona Gov. Katie Hobbs says the implementation of tariffs on Mexico and Canada by President Donald Trump brings costs up and threatens industries in Arizona.

On Saturday, Trump signed an order that placed tariffs on these countries and China for what he says is their inaction towards addressing fentanyl and illegal immigration.

While Arizona Republicans praise President Donald Trump’s tariff threat against Mexico as a deft negotiating ploy, Democrats warn it is creating an increasingly unstable relationship with the state’s largest trading partner.

In a statement, the governor says the taxes threaten to raise prices ranging from groceries to housing. She also says the tariffs create risks for those industries such as semiconductor manufacturing and agriculture.

“Arizona’s economy is growing, and we’re working hard to create jobs and lower costs,” said Hobbs said in an email statement. “But let me be clear, these tariffs are a tax on Arizona families and businesses that threatens to derail our progress. These new taxes threaten to hike grocery and gas prices. 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.”

President Donald Trump announced he would pause the 25% tariff on Mexico Monday morning. They are still set to be in place Tuesday for Canada and China.

Mexican President Claudia Sheinbaum said in her morning press conference that President Donald Trump’s 25% tariff on goods from her country will be delayed at least a month.

Concerns about these tariffs also came from representatives of the Arizona Chamber of Commerce and Industry, Arizona Hispanic Chamber of Commerce and Greater Phoenix Chamber.

"Strong trade policies should help businesses grow and keep costs down for American consumers — not make things more expensive," said Danny Seiden, president and CEO, Arizona Chamber of Commerce and Industry, said in the joint statement Saturday. "Tariffs aren’t a tax on foreign countries; they’re a tax on American businesses, consumers and families. This move threatens to disrupt operations, slow economic growth, and raise prices at a time when affordability is already a major concern for families."

The auto industry has built a North American supply chain that ping-pongs parts between the U.S., Mexico and Canada. Tariffs of 25%, if actually imposed, would be costly for buyers and the industry.

Ignacio Ventura is a reporter for KJZZ. He graduated from the University of Southern California with a bachelor’s degree in creative writing and a minor in news media and society.