Price Increases Loom for Arizona Businesses Due to New Tariffs

Arizona businesses are bracing for price hikes as new tariffs, imposed by the Trump administration, are set to take effect on Tuesday.

Beginning March 4, imports from Canada and Mexico will incur a 25% tariff, with a similar duty on all steel and aluminum imports starting on March 12. This is expected to significantly affect manufacturing costs across the board.

Remington Industrial Supply in Yuma County is making preparations for these changes. They’re proactively stocking materials, filling their storage with an assortment of steel and aluminum supplies. This is crucial for their local clients, which include auto shops, welding operations, and farmers.

“Much of our work is tied to agriculture, and activity is ramping up. This is our peak season. A lot of machinery is in the process of being built. Everything that involves a conveyor belt relies on some steel,” noted a representative from the company.

According to Hernandez, around 60% of the steel they use is imported. Their key suppliers have already indicated that prices are on the rise, affecting both their operations and those of their customers.

Hernandez mentioned that aluminum sheets could range from $30 to $40, based on weight.

The United States is the second-largest importer of steel, bringing in roughly 26 million tons in 2023 from nations like Mexico, Canada, and Brazil. Trump’s executive order for 25% tariffs on aluminum and steel is set to impact all countries.

“It’s quite expensive to build right now. If you’re repairing anything, it’s even more costly. Doing things correctly just isn’t cheap these days,” Hernandez added.

The administration argues that these tariffs are intended to enhance domestic steel production.

In the meantime, companies such as Remington Industrial Supply are preparing to weather the changes while maintaining a hopeful outlook. “We hope this is beneficial for our economy and that it actually leads to positive outcomes for us,” said Hernandez.