TRUMP’S TARIFFS/ U.S. & CANADA TRADE

Trade relationships are rooted in strong economic collaboration and understanding, such as the connection between the United States and Canada. This robust commercial alliance is built on a foundation of shared values, geographic proximity, and complementary economic strengths, facilitating a seamless flow of goods, services, and investments across the world's longest international border.

The enormity of bilateral trade is highlighted by the fact that over $2 billion worth of goods and services are traded between the two nations every day. The total estimation of this two-way trade between Canada and the United States reached $918.3 billion in 2023.

Total the U.S. bought from Canada: Goods-US$412.7 billion (per USTR and BEA) plus Services estimated at US$38.5 billion for a total of US$451.2 billion.

Major categories included: US$
-Mineral fuels, oils, and distillation products: $131.91 billion
-Vehicles (other than railway or tramway): $55 billion
-Machinery, nuclear reactors, and boilers: $31.86 billion
-Commodities not particularized according to kind: $19.97 billion
-Plastics: approximately $13.67 billion
- Other: Remaining goods (e.g., metals, consumer products) fill out the $412.7 billion total, with notable contributions from metal/minerals ($41 billion) and agri-food.


In 2024, Canada bought approximately $432 billion worth of goods from the United States. Key commodities included:

-Vehicles: $52 billion
-Nuclear reactors, boilers, and machinery: $49 billion
-Mineral fuels, oils: $35 billion
-Electric machinery: $28 billion
-Plastics & plastic articles: $17  billion
-Florida oranges and orange juice, along with other food products: $230 million.
(This figure includes a variety of citrus products, with Florida being a significant supplier to the Canadian market.)

Michigan emerges as the front-runner with sales to Canada worth $25.5 billion, followed by Texas ($21 billion), Ohio ($19.6 billion), California ($16.9 billion), and Illinois ($16.3 billion). North Dakota, Maine, and Montana show particular dependencies on exports to Canada, with 82.5%, 47.5%, and 46.7% of their total exports purchased by Canada. Canada remains the number 1 customer for as many as 35 U.S. states.


If a 25% tariff were imposed on Canadian goods (as began March 4, 2025, with 10% on energy) and Canada retaliated with similar measures (e.g., $155 billion in tariffs), the impact on American states and citizens would be significant:

 -U.S. GDP could shrink by 1.6% (approximately $468 billion, based on 2024’s $29.24 trillion GDP).

 -The cost to the average American might be about $1,300 per person annually (for 344.5 million people).

 -Significant layoffs could occur, particularly in energy (Texas), auto (Michigan), and heavy manufacturing (Ohio) sectors.

-The U.S. could face a recession if tariffs persist beyond six months.

- Canada could face a projected 2.6% GDP loss.

It seems clear that tariffs, as currently implemented, are not beneficial for either country, 




"For information purposes only"

Comments

Post a Comment

Popular posts from this blog

Are We Witnessing the Seeds of Revolution?

Image
 Historical and economic lens on today’s rising inequality, taxation, and trade tensions—examining whether current conditions echo the unrest that sparked revolutions of the past.   Tariffs, Tax Policy, and America’s Growing Divide As 2025 unfolds, a cascade of economic changes is reshaping the American landscape, raising questions about the nation’s social stability and the potential for upheaval. With new tariffs driving up consumer prices and tax policies favoring the wealthy, the United States is experiencing a widening divide between the “haves” and “have-nots.” Are these the seeds of revolution, or simply the latest chapter in the country’s long history of economic cycles? Tariffs and Consumer Prices: The New Tax on Households President Trump’s renewed tariffs in 2025 have quickly made their presence felt in American wallets. According to the Yale Budget Lab , the average U.S. household is experiencing an effective income loss of around $2,000 in 2025 due to the...
Read more

CARBON CAPTURE & STORAGE (CCS)

Image
 Climate change remains a defining challenge of our time, and mitigating its effects requires innovative technology and considerable effort. Carbon capture and storage appears as a promising means to reduce greenhouse gas emissions significantly. Let's look at the overall function and potential of carbon capture technology, along with introducing two landmark projects that are set as new milestones in this crucial field. Carbon Capture and Storage (CCS), as the name suggests, is a technology that seizes carbon dioxide (CO2) emissions from industrial and power generation processes. This method prevents emissions from entering the atmosphere, thus contributing to the fight against climate change. Once captured, the CO2 can either be permanently sequestered underground in geological formations such as depleted oil and gas reservoirs, saline formations and/or unmineable coal seams. Also there is the option of converting CO2 into a range of products such as methanol, which could fu...
Read more

SOME KEY ASPECTS OF TRUMP’s BIG BILL

Image
Explore the downsides of Trump’s Big Bill: Medicaid & food aid cuts, rising deficits, & tax breaks favoring the rich. Learn how it impacts you! The Congressional Budget Office (CBO) estimates the bill will add approximately $3.3 trillion to the federal deficit over the next decade, with some analyses suggesting up to $3.9 trillion   The legislation includes cuts to the Supplemental Nutrition Assistance Program (SNAP) by introducing stricter eligibility and work requirements, potentially reducing access to food assistance for millions of low-income Americans.   According to the CBO, the wealthiest 10% of households would see a 2.3% increase in after-tax income, while the poorest 10% could face a 3.9% decrease due to reduced benefits from programs like Medicaid and SNAP. This makes the bill one of the most regressive pieces of legislation in decades, exacerbating income inequality   A provision in the bill conditions federal broadband funding on states refra...
Read more