Arizona

Arizona sits at the crossroads of America's semiconductor ambitions and its tariff contradictions. The state hosts TSMC's $40 billion fab complex in Phoenix — the centerpiece of US chip reshoring — yet tariffs on specialized equipment from Japan and the Netherlands increase construction costs by hundreds of millions. Intel's Chandler campus and scores of chip suppliers form a semiconductor corridor that relies on duty-free movement of ultra-pure materials and precision tools. Separately, Arizona's copper mining industry — the state produces 70% of US copper — faces retaliatory tariffs from China on refined copper exports while benefiting from tariffs that raise prices on imported copper. The agriculture sector, particularly Yuma's winter lettuce and Arizona's Pima cotton, faces retaliatory targeting. Arizona's proximity to Mexico makes the 25% tariff on Mexican goods especially painful: the Nogales port of entry handles $30 billion in annual trade, mostly fresh produce that will simply cost more for American consumers. Raytheon's massive Tucson missile plant depends on allied supply chains now disrupted.