Border trade that may collapse due to tariffs

Calculations from the Global Program of the Global Economy and the Research of the Development of the Brokings Institution show border trade segments that can suffer severely or deleted almost entirely from tariffs between the United States and its Mexico and Canada neighbors. The biggest losses are foreseen in the case of ongoing tariffs from the US and the main vengeful fees coming from the other two countries in question such as mines, leather and lumber, but also computers, electronics and electronic devices.

25% tariffs for all Mexican goods and most Canadian goods entering the United States went directly to midnight Tuesday and stopped on Thursday for all goods under the United States-Mexico Agreement by April 2, corresponding to approximately 50% of Mexican imports and 38% of Canadian imports. On Wednesday, the 25% tax had already stopped for cars, a product in the heart of the Trump administration for proximity, but also what US consumers are considered to be priced. April 2 is the same date that President Donald Trump has mentioned for the start of tariffs that match other countries that impose obligations on American goods, an act that was directed at India, among other things.

Tariffs against Canada and Mexico had previously stopped between February 1 and March 3, showing the style of raw, raw, raw to negotiate the new US government has employed with other countries, including its close allies.

Brookings data show that the exports of the Mines from the US to the Canada would fall 97% in a reciprocal tariff scenario, while the mining of Mexico to the United States would meet a similar fate. The US tariff would only leave mining exports to Canada to reduce by nearly 60%, the data predict. Imports of Canada mining to the JSC can be affected in the melody of nearly 70%.

Other endangered resource industries are lumber and leather that go from the US to Mexico, losing 80% of the trade volume (but much less if Mexico is not revealed). A lot would also be affected by computers and electronics between the two countries, potentially decreasing by more than 80% in each direction. Canada is also expected to send less electronics and electronic devices to the south. Losses up to 79% are foreseen for sectors in the case of full revenge tariffs.

Machinery in shock

Motor vehicles, the most valuable United States imported good, could see losses in the trade volume of about a quarter for remittances departing from the US and 40% -50% for shipments from neighbors only due to US tariffs. In a mutual scenario, this will increase to 50%-65%, indicating that Trump’s fees in neighboring countries are a high gambling in which all parties have a lot to lose. Vehicle manufacturers said tariffs would be devastating to them and that their supply chains were integrated across the borders in North America, which means that many cars were partially American and partially foreign.

Canadian Prime Minister Justin Trudeau, who issued a harsh response to trade barriers that will first live this week, said the vengeful tariffs his government decided in response will stay in the country. 25% US $ 30 billion tariffs entering Canada also began Tuesday. Trudeau had initially said that this would grow to include $ 125 billion in US imports at three weeks, but moved this date on April 2 as well. In 2023, Canadian imports from the US reached $ 269 billion. Mexico had previously planned a revenge tariff announcement on Sunday.

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