Trump tariffs: Some Arizona businesses starting to feel the impact
PHOENIX - There are a lot of questions about what President Donald Trump's tariffs could mean for Arizona and the state's snowbird industry.
The backstory:
So far, the president has imposed 20% tariffs on Chinese imports, 25% on global steel and aluminum imports and 25% tariffs on imports from Canada and Mexico that don’t comply with a North American trade agreement over the U.S. fentanyl crisis.
On April 2, President Trump has plans to reveal additional tariffs.
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Big picture view:
In the Phoenix area, billboards that read "tariffs are a tax" are popping up on the side of freeways. The billboards are paid for by the Government of Canada, as stated on the billboards.
Meanwhile, businesses that cater to snowbirds are starting to see the effects of the tariffs.
Miles Zimbaluck is a real estate agent who works with Canadians. He said lately, his clients havew been doing more selling than buying.
"We are definitely seeing an uptick in people selling their properties," said Zimbaluck. "From January to March of 2024 versus January to March of 2025, we’ve seen a 700% increase in listings from Canadians, and about a 40% drop in purchases."
Zimbaluck said part of that is the weak purchasing power of the Canadian Dollar. Politics forms the other part.
"We have some clients who are absolutely selling purely because of political reasons," said Zimbaluck. "They don’t feel welcome here anymore. They are worried about their financial investment in the U.S., what’s going to happen."
Business leader details tariff's impact on Arizona
President Trump argued that by encouraging U.S. consumers to buy more American-made goods, the measures will help protect U.S. manufacturing and jobs. Critics, however, say it will raise prices and fracture relationships with trade allies.
MacKenzie Shane with the Greater Phoenix Chamber said the tariff's impact on Arizona's economy is enormous.
"Canadian snowbirds have an estimated impact of about $1.4 billion to our economy," said Shane.
Meanwhile, Stephen Fine with Snowbird Adviser said the reaction from his clients of what to do next is mixed, and the full impact won’t be known until next season, starting in October 2025.
With trade tensions growing frosty with our northern neighbors, there are concerns about what that could mean for Arizona.
"We know many who have sold their property, and we are contemplating whether we should or not as well," said Gary Wagner.
Wagner is from Canada's Alberta Province, has spent 12 winters in Apache Junction. He wants American and Canadian leaders to think about people like his family.
What Wagner Said:
"To me, they aren’t considering what the implications are down the line, and that’s what is most concerning to us is the damaging of the relationship between Americans and Canadians," said Wagner.