Trump’s Tariffs Will Raise Costs for Arizonans, Fund Tax Breaks For Wealthy
PHOENIX — President Trump's newly imposed tariffs on steel and aluminum threaten to worsen inflation and raise prices on automobiles, household appliances, and even homes that working Arizona families buy. Congressional Republicans want to use those tariffs to pay for more tax breaks for the ultra-wealthy and corporations.
According to CBS News:
“Because U.S. importers pay tariffs on overseas goods directly to the federal government, the costs are typically passed onto American consumers, trade experts told CBS MoneyWatch. That means some products that rely on steel and aluminum, such as vehicles and appliances, are likely to become more expensive if the steel and aluminum tariffs go into effect.
A typical car contains roughly 1,000 pounds of steel at a cost of about $6,000 to $7,000 per vehicle, Baker told CBS MoneyWatch. That means adding a 25% tariff could increase the cost of a car by $1,000 to $1,500, he estimated. Although some automakers might shift to buying more U.S.-made steel, American manufacturers would also likely boost their prices, taking advantage of the higher costs for foreign-made steel, he added.
Economists and Wall Street analysts warn that new U.S. tariffs, if sustained, could cause inflation to flare even as many Americans say they continue struggling with the cost of living. Mr. Trump's latest proposed steel and aluminum tariffs, plus the reciprocal tariffs, could boost the core personal consumption expenditures price index — a key measure of inflation — by an additional 0.4 percentage points, Deutsche Bank economists estimate in a Feb. 10 research report.
If the postponed tariffs on imports from Mexico and Canada go into effect after the 30-day pause, inflation could rise higher than 3.5%, they added.”
"Arizonans are demanding that elected leaders lower the cost of goods, but Trump's tariffs will make things more expensive for working families just to fund massive tax breaks for those at the very top," said Andrea Moreno, Executive Director of Honest Arizona. "Congressmen Juan Ciscomani and David Schweikert need to urge President Trump to lift his tariffs that will make cars and other products more expensive for Arizonans—all to make sure the wealthy pay even less in taxes."
In addition to tariffs, Republicans in Congress are eyeing cuts to health care and other critical programs to extend the 2017 GOP Tax Law:
The richest 1 percent will get an average tax cut worth more than the entire after-tax income of a typical middle-income American household
Republicans have proposed slashing SNAP, the nutrition assistance program that 923,400 Arizonans rely on to put food on the table
A 25% tariff on imports from Canada and Mexico has been announced by the administration and is set to take effect at the beginning of March. These tariffs, which Republicans have also said could pay for the tax plan, would raise the price of gas, groceries, and other essential goods for Arizonans.
Arizonans can find out more about the GOP Tax Law HERE.
###