How will Trump’s tariffs impact Mexico and Canada’s exports?

Tariffs of 25 percent on Mexican and Canadian goods came into effect on Tuesday. The 25 percent US tariff on Mexican and Canadian exports could raise costs, reduce trade, lead to job losses, create economic uncertainty and trigger retaliatory tariffs, escalating a trade war. According to the Observatory of Economic Complexity, Mexico’s main exports to the US in 2023 were: Vehicles and auto parts : including cars, trucks and automotive components : including cars, trucks and automotive components Electrical machinery and electronics : including computers, telecommunications equipment and consumer electronics : including computers, telecommunications equipment and consumer electronics Machinery, mechanical appliances and parts : including industrial machinery and equipment : including industrial machinery and equipment Mineral fuels and mineral oils : including petrol and refined petrol : including petrol and refined petrol Optical, photographic, technical and medical apparatuses : including instruments and appliances used in medical, surgical and scientific applications : including instruments and appliances used in medical, surgical and scientific applications Furniture, bedding and lighting : including household and office furniture, mattresses and lighting fixtures : including household and office furniture, mattresses and lighting fixtures Beverages, spirits and vinegars : including beer and hard liquor : including beer and hard liquor Fruit, nuts and fruit peels : including tomatoes, avocados and a variety of fruits and vegetables What Canadian products will be affected by tariffs? Canada is the largest foreign supplier of oil to the US with energy products, including crude oil and petroleum products, accounting for about 30 percent of all Canadian exports to the US. According to the OEC, Canada’s main exports to the US in 2023 were: Energy products : including crude oil and petroleum products : including crude oil and petroleum products Cars, tractors, trucks and car parts Machinery and mechanical appliances : covering industrial machinery and equipment : covering industrial machinery and equipment Plastics and plastic articles Wood and charcoal products : including plywood and saw wood : including plywood and saw wood Electrical machinery and equipment : including electrical appliances and components : including electrical appliances and components Precious metals and stones : including gold, silver and diamonds