Arizona Governor Hobbs voiced strong opposition to the tariffs, stating that they are ‘bad for families and bad for business.’

The newly imposed U.S. tariffs on imports from Canada, Mexico and China are sending economic shockwaves across California, Arizona and Nevada, with business leaders and economists warning of rising costs for consumers and potential job losses.

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Arizona Governor Katie Hobbs voiced strong opposition to the tariffs, stating that they are “bad for families and bad for business,” according to local KJZZ News. The governor’s concerns reflect growing anxiety in the state, where uncertainty over trade policies threatens to stifle economic growth.

In California’s Bay Area, businesses are already preparing for higher costs. According to ABC7 News, local importers are particularly concerned about the impact on consumer goods and manufacturing supplies. The California Chamber of Commerce reported that companies are reconsidering their investment plans for 2025.

The tourism sector in Nevada faces potential challenges after Canadian Prime Minister Justin Trudeau urged Canadians to vacation domestically rather than go to the United States.

The Las Vegas Review-Journal reported that industry experts predict a decline in Canadian visitors, a crucial demographic for the city’s tourism economy. The U.S. Travel Association suggests the tariffs could significantly impact travel from Canada to Las Vegas, affecting the region’s hospitality industry.

Housing markets across the three states are also under strain. Tariffs on Canadian lumber are driving up construction costs, with CNN reporting that wood prices could hike by as much as 25 percent, complicating California’s efforts to implement new housing affordability measures in 2025.

Small businesses are bearing the brunt of the impact, with many struggling with rising costs of imported materials and parts, Fortune Magazine reported.

Economists from Arizona State University warn that these expenses will likely be passed on to consumers, potentially squeezing family budgets across the state.

The agricultural sector in Arizona and California faces special challenges. The Arizona Governor’s Office reported that agricultural leaders are expressing concern about retaliatory tariffs affecting their export markets.

California’s San Joaquin Valley farmers are also worried about market access and rising equipment costs, according to CalMatters, a newsroom.

Border communities are facing distinct economic pressures. Terra Lawson-Remer, the acting chair of the San Diego County Board of Supervisors, said in a Facebook post last week that “Trump tariff threats pose a serious risk to our region’s economy, our County’s budget and funding for critical local services.”

“These trade wars don’t just hurt businesses — they put San Diego families and workers at risk. We need smarter solutions that protect our region’s economy and the people who depend on it,” she added.

Public opinion in the region appears skeptical of the tariffs’ benefits. The Nevada Independent reported that residents across party lines oppose new tariff hikes, with particular concern about their impact on the state’s retail and gaming industries.

Economic forecasts for the region remain cautious. The Commonwealth Club of California’s recent economic outlook forum highlighted how tariffs, combined with tax uncertainty, are creating significant challenges for business planning in 2025. Analysts from Elliott Davis, a business solutions firm, suggest that companies are revising their strategies in response to the changing trade landscape.

Trump announced on Saturday a 25-percent additional tariff on imports from Canada and Mexico, and 10 percent on imports from China. However, on Monday, Trump held off on his tariff threats against Mexico and Canada for 30 days after a last-minute deal with the two countries for further negotiations.

teleSUR/ JF Source: Xinhua

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