New 50% tariff on Canadian goods could affect trade with Arizona

President Donald Trump imposed sweeping 50% tariffs on Canadian goods over the weekend after negotiators failed to reach an agreement Friday. Canada is Arizona’s third largest trade partner.

Trade between the state and Canada amounts to about $5.7 billion both ways, with a slight surplus in Arizona’s favor.

But the new federal tariffs on Canadian goods could affect Arizona’s trade, as Canada has also promised dollar for dollar retaliatory measures starting next month.

“You've got two countries that have got an enormous amount of history together that, you know, there is a rebalancing trying to be done in a very, very short period of time," said Glenn Williamson, CEI of the Canada Arizona Business Council.

He says supplies used in housing construction, like cement and lumber, are among the goods hit with the new taxes.

“All these builders are going to have to figure out how do they absorb these costs. And do they pass it on to the consumer? Do they absorb it themselves," Williamson said.

The tariffs on those products come as the state faces an affordable housing shortage.

President Trump threatened further tariffs Monday morning on Canadian cars.