Fluctuating tariffs causing instability for Arizona produce

The uncertainty of fluctuating tariffs is causing hardship and economic instability for Arizona produce companies, according to small business owners and larger produce companies who recently shared their concerns with Governor Katie Hobbs.

Hobbs tariffs Gov. Katie Hobbs meets with with stakeholders on March 7, 2025, in Nogales, Arizona, to discuss the challenges of fluctuating fresh produce tariffs on Mexico.
Danyelle Khmara

After meeting with more than a dozen stakeholders in Nogales, Arizona, Friday, Gov. Katie Hobbs said the back and forth is creating a lot of distrust in the economy.

“It's creating uncertainty for the agricultural industry, across industry and across the community," she said. "It doesn't just affect agriculture; it affects all these industries, and all these industries that are critical to the economy here in Nogales. So it's just creating a lot of chaos.”

Skip Hulett is with NatureSweet, which grows tomatoes in Willcox and various states in Mexico.

“It's very disruptive," he said, during a roundtable with Hobbs. Our cherubs, which is the number one seller — it's the number one selling tomato in the country. We grow about 175 million pounds a year that we bring over, and so we're really struggling through this whole just the uncertainty. What business wants more than anything and needs more than anything is just certainty, especially in fresh produce.”

He said those tomatoes can only be grown in Mexico — at the affordable price U.S. consumers are accustomed to.

A University of Arizona study found economic activity in the U.S. linked to produce imports through the Nogales port of entry is about 5-billion-dollars annually.

Last week, President Donald Trump put a one-month pause, for the second time, on some 25% tariffs, including on produce from Mexico.

By posting comments, you agree to our
AZPM encourages comments, but comments that contain profanity, unrelated information, threats, libel, defamatory statements, obscenities, pornography or that violate the law are not allowed. Comments that promote commercial products or services are not allowed. Comments in violation of this policy will be removed. Continued posting of comments that violate this policy will result in the commenter being banned from the site.

By submitting your comments, you hereby give AZPM the right to post your comments and potentially use them in any other form of media operated by this institution.
AZPM is a service of the University of Arizona and our broadcast stations are licensed to the Arizona Board of Regents who hold the trademarks for Arizona Public Media and AZPM. We respectfully acknowledge the University of Arizona is on the land and territories of Indigenous peoples.
The University of Arizona