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Canada retaliates against US tariffs, putting $185 million in Arizona exports at risk

Canada hit 623 US products with 50% retaliatory tariffs. About $185 million in Arizona exports are now exposed, with aerospace potentially next in the crosshairs.
Canada tariff retaliation: What it means for Arizona exports
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Canada announced retaliatory tariffs on 623 American products after the US imposed 50% tariffs on a range of Canadian goods on Aug. 22, with no exceptions — even for products covered under the trade deal negotiated during the president's first term.

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Canada matched the US rate, hitting most of those 623 products with the same 50% tariff.

US exporters did $333 billion in business with Canada last year. Canada's retaliatory tariffs touch about $20 billion of that — roughly 6% of total US exports to Canada.

The hardest-hit categories include networking and communications equipment — including smartphones — and parts for derricks, the towers commonly used in oil rigging.

Arizona faces that same 6% exposure. About $185 million of the state's $3 billion in exports to Canada are at risk.

Canada imports two Arizona products at more than $30 million each. Networking and communications equipment accounts for nearly $38 million, while electrical cabling accounts for $34 million. The top 10 most-exposed Arizona exports are a mix of industrial equipment and products used in transportation.

Any tariffs hurt Arizona companies, and escalation remains a concern. Over the weekend, former President Trump threatened Canadian jet manufacturer Bombardier — a potential gut punch for Arizona's aerospace sector.

Arizona exported over $500 million in aircraft and aircraft parts to Canada last year and imported $237 million back.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.