OPINION — It has been more than a year since President Trump initiated his tariff program to revive the U.S. economy. The on-again, off-again nature of the policy approach and the successful legal challenges to his tariffs have raised trade-policy uncertainty to high levels.
The president’s decision not to extend the U.S.-Mexico-Canada Trade Agreement is another example of the kind of policy choices that raise trade uncertainty. The combination of higher tariffs and uncertainty surrounding future tariff rates has been particularly harmful to small- and medium-size businesses, including those in Arizona, which generate half of all jobs in the country. If trade policy continues down this path, it will hamper economic growth.
Using U.S. Census data, research has shown that 97% of U.S. importers are small- and medium-size businesses. In terms of value, these businesses account for one-third of all imports. These figures indicate that trade policy can have a significant effect on these businesses.
