President Donald Trump is planning to levy new tariffs on Canada and Mexico starting Tuesday. Those countries are big international trade partners for many US states.
Canada was the largest goods import trade partner for nearly half of the 50 states in 2024, Census Bureau data showed. You can hover over the map below to see more about the top import trade partners for each state.
Trump said on Monday that tariffs of 25% on Mexico and Canada, which were previously planned to go into effect in February, would begin on Tuesday. He said there was "no room left" for the countries to make a deal with the US about the proposed tariffs.
Trump previously said the "massive subsidies that we're giving to Canada and to Mexico in the form of deficits" were one of the reasons for the tariffs. Trying to mitigate the level of drugs coming into the US is another.
If Trump does implement his tariff plans, it could lead to retaliatory tariffs from the targeted countries, which could harm US exports. China had imposed some tariffs following the 10% tariff that was enforced on February 4.
Canada was the largest export trade partner for 32 states in 2024, while Mexico was the main export trade partner for several other states.
"We will continue to work to ensure to do everything we can to make sure that there are no tariffs on Tuesday," Justin Trudeau, the prime minister of Canada, said on Sunday.
Trudeau added if the tariffs do go into effect, "we will have a strong unequivocal and proportional response as Canadians expect."
The new tariffs would likely affect US consumers.
"We'll see businesses deciding whether they're going to absorb those extra costs or they're going to pass them through to consumers," Mary Lovely, a senior fellow at the Peterson Institute, previously told Business Insider. "Given that consumer spending has been fairly buoyant and that the economy is doing well, we would expect them to pass a lot of it through to consumers."
Tiff Macklem, the governor of the Bank of Canada, previously talked about the economic effects of a trade conflict between the US and Canada.
"A long-lasting and broad-based trade conflict would badly hurt economic activity in Canada," Macklem said. "At the same time, the higher cost of imported goods will put direct upward pressure on inflation."
