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Trump administration poised to accept 'palace in the sky' as a gift for Trump from Qatar; 283 workers nationwide, including 83 in CO, killed on the job; IL health officials work to combat vaccine hesitancy, stop measles spread; New research shows effects of nitrates on IA's most vulnerable.

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The Pentagon begins removing transgender troops as legal battles continue. Congress works to fix a SNAP job-training penalty. Advocates raise concerns over immigrant data searches, and U.S. officials report progress in trade talks with China.

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Volunteers with AmeriCorps are reeling from near elimination of the 30-year-old program, Head Start has dodged demise but funding cuts are likely, moms are the most vulnerable when extreme weather hits, and in California, bullfrogs await their 15-minutes of fame.

2025 is here. What economic trends could affect Arizonans?

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Thursday, January 2, 2025   

Economists in Arizona and around the country said tariffs, cracking down on immigration, tax cuts and reduced energy credits will likely have a direct effect on the economy, and with President-elect Donald Trump soon to take office and having promised policy reform in many areas, change is likely on the way.

Jason Miller, professor of supply chain management at Michigan State University, said if mass deportations are executed by the incoming Trump administration, it could spell trouble for a border state such as Arizona. One in six Arizona workers is an immigrant and industries within the state such as agriculture and construction depend on their labor, according to the American Immigration Council.

"If executed, to potentially cause shortfalls of labor in the agriculture space and also the food-manufacturing space," Miller outlined. "Then what implications could that have for prices that farmers and manufacturers are going to be charging and therefore going to get passed on to consumers."

A June study by the Peterson Institute for International Economics found deporting millions of undocumented workers would result in years of subsequent inflation. With the economy having been the number one issue for so many voters in Arizona and around the nation, expectations are high for Trump to deliver on lower prices and economic stability.

Miller pointed out the U.S. economy seems to be experiencing what he calls "some good tailwinds," but added proposed tariffs could be among the things to change it. He added one of the sectors remaining steady throughout last year was the automotive industry.

"November's sales for motor vehicles were phenomenally strong for light trucks and SUVs," Miller noted. "It was on a seasonally adjusted basis, the third-highest month of all time."

Miller emphasized on a unit sale basis, which refers to the actual number of individual products sold during a time period, vehicle sales still have not bounced back to pre-pandemic levels, as people are choosing to buy more expensive vehicles, such as trucks and SUVs, but far fewer passenger cars. He added with interest rates coming down, it could help drive sales numbers back up.


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