WASHINGTON (AP) — The cities in the U.S. that are most susceptible to a trade conflict with Canada are predominantly located in the states that played a significant role in Donald Trump’s election victory — highlighting the potential political risks associated with his tariff initiatives.
A recent analysis published on Thursday by the Canadian Chamber of Commerce identified the U.S. metro areas most reliant on Canadian exports, with San Antonio and Detroit leading the pack out of 41 regions examined. These results indicate that the United States’ 25% tariffs on Canada and the ensuing retaliatory measures from Canada could significantly impact important political states across the U.S.
This analysis was completed prior to the Republican president’s announcement on Wednesday regarding additional 25% tariffs on imported vehicles and components, set to take effect on April 3.
“The ramifications of the recent escalation in this detrimental tariff conflict will extend beyond Canada, despite what the U.S. administration may wish to suggest,” stated Candace Laing, president and CEO of the Canadian Chamber of Commerce. “Jeopardizing tens of thousands of jobs on both sides of the border could undermine North America’s automotive leadership, instead pushing companies to establish operations and hire elsewhere. This tax increase jeopardizes factories and employment opportunities for generations, if not indefinitely.”
A significant portion of San Antonio’s exports, encompassing its aerospace, automotive, and energy sectors, is directed toward Canada. Approximately 40% of the exports from the auto-centric Detroit region also go to Canada. Trump’s victories in Michigan, Pennsylvania, and Wisconsin were pivotal for his overall success in the previous presidential election, and both Milwaukee and Pittsburgh rank among the top 10 cities vulnerable to a trade dispute with Canada.
Other metropolitan areas with significant reliance on Canadian exports include Kansas City, Missouri; Louisville, Kentucky; Nashville, Tennessee; Columbus, Ohio; Chicago; and Cleveland. Besides Illinois, all these states supported Trump in the last election.
Trump has imposed 25% tariffs on a variety of goods from Mexico and Canada, along with a reduced 10% duty on energy products from Canada. While some of these tariffs have been postponed or put on hold, they are expected to fully take effect in April.
Canadian officials have cautioned that the United States will experience higher prices, job losses, and slower economic growth as a consequence of the trade war. However, an analysis from the Brookings Institution indicated that the economic repercussions would be more intense for Mexico and Canada, given their greater dependency on U.S. trade.
Trump has claimed that the purpose of the tariffs is to combat illegal immigration and drug trafficking, while also expressing dissatisfaction with the trade deficit with both nations and provocatively suggesting that Canada could become the 51st U.S. state.