After US President Donald Trump came back to power, he initiated a trade war with several countries, including Canada, that has culminated in tariffs and counter-tariffs. An analysis shows that the most vulnerable US states due to the trade war with Canada are those that helped Donald Trump's return to the White House. The revelation of the current analysis hints that Trump would be taking political risks with his tariff plans. The analysis released by the Canadian Chamber of Commerce detailed the areas which are most dependent on exports to Canada, with San Antonio and Detroit topping the list of 41 US metro areas.
What do the findings suggest?
According to the findings, the United States' 25 per cent tariffs on Canada and Canada's retaliations could inflict meaningful damage in key states for US politics.
The analysis was conducted before the Republican president announced Wednesday that he was placing additional 25 per cent tariffs on imported autos and parts starting on April 3.
“The consequences of today's escalation in this destructive tariff war will not be contained to Canada, as much as the US administration would like to pretend," said Candace Laing, president and CEO of the Canadian Chamber of Commerce.
Which states significantly contributed to Trump's victory?
Trump's wins in Michigan, Pennsylvania, and Wisconsin were crucial for his overall victory in November's presidential election -- and Milwaukee and Pittsburgh also rank in the top 10 for exposure to a trade war with Canada.
Other cities most dependent on exports to Canada include Kansas City, Missouri; Louisville, Kentucky; Nashville, Tennessee; Columbus, Ohio; Chicago; and Cleveland. All of those states, aside from Illinois, backed Trump in the last election.
Trump has placed 25 per cent tariffs on many goods from Mexico and Canada, with a lower 10 per cent tax on energy products from Canada. Some of those tariffs have been suspended or delayed, though they're set to fully hit in April.
(With inputs from AP)