Americans purchase food, vehicles, TVs, toys, appliances, and other goods from Mexico and Canada totaling $900 billion annually; should President Donald Trump follow his threat to impose 25% tariffs, the cost of these products could increase.
Viewing them as a negotiation tool to get concessions for the United States, few trade analysts and economists think the president will implement such high tariffs.
The stakes are surely very high, though.
Comprising roughly thirty percent of all imported commodities, the neighbors to the north and south are the main commercial partners of the United States.
The United States imported $ Daly billion from Mexico and $428 billion from Canada in 2023. For 2024, the figures look to be somewhat comparable.
Representing about one-third of all U.S. exports, American businesses also delivered a combined $676 billion in goods to those two nations in 2023 Top exports are oil, computer chips, cars and aircraft.
Still, the U.S. routinely runs trade deficits with Mexico and Canada. The 2023 combined deficit came out to be $241 billion.
Benefiting from its proximity, improved political connection, and current free-trade agreement, Mexico recently ranked highest among all countries importing goods into the United States.
Although the present trade agreement is under review on July 1, 2026, trade specialists believe Trump is aiming to negotiate better terms for the United States.
Influential head of the biggest bank in the world, JPMorgan Chase Chief Executive Jamie Dimon, said tariffs are “economic tool” that can “bring people to the table” to negotiate. He claimed it is too early to project gloom and disaster.
Wednesday on CNBC, he responded, “We’re going to find out,” asked how Trump’s approach will turn out.
