Why the tariff focus on China, Mexico, and Canada?
Trump's strategy should be titled "Squeeze our top 3 trading partners". This covers about 40% of trade value.
Nov 2024 U.S. Total Trade data:
1 Mexico $69.1 B 15.4%
2 Canada $61.8 B 13.8%
3 China $50.5 B 11.3%
If the plan is to export more energy, it might be a hard sell to the next door neighbors. Exporting more manufactured goods... well, 25% tariffs would cut Canadian and Mexican GDP -2% (as per David Rosenberg), weaken the CAD and MXP by 20%, and make imports from those more attractive. Especially since supply chains already exist.
the US relies on CANADA for 60 percent of its oil , MOST US OIL is light , most US REFINERIES are designed for heavy oil , no mention of the PROHIBATIVE cost of building new refineries ???
Why the tariff focus on China, Mexico, and Canada?
Trump's strategy should be titled "Squeeze our top 3 trading partners". This covers about 40% of trade value.
Nov 2024 U.S. Total Trade data:
1 Mexico $69.1 B 15.4%
2 Canada $61.8 B 13.8%
3 China $50.5 B 11.3%
If the plan is to export more energy, it might be a hard sell to the next door neighbors. Exporting more manufactured goods... well, 25% tariffs would cut Canadian and Mexican GDP -2% (as per David Rosenberg), weaken the CAD and MXP by 20%, and make imports from those more attractive. Especially since supply chains already exist.
https://www.census.gov/foreign-trade/statistics/highlights/topcm.html
the US relies on CANADA for 60 percent of its oil , MOST US OIL is light , most US REFINERIES are designed for heavy oil , no mention of the PROHIBATIVE cost of building new refineries ???