Source: Cato Institute
by Clark Packard
“Trump’s tariff proposals would be a double whammy for many U.S. companies, both exporters and importers. Beyond lower exports, they also will have to pay higher costs for the industrial supplies and capital goods that make up approximately half of U.S. imports − many of which come from Canada, China and Mexico. Consider automotive manufacturing. Free trade agreements among the United States, Canada and Mexico have enabled supply chains to become highly integrated across North America. So tightly linked are the three countries that a car can cross borders up to eight times before it is fully assembled, and U.S. products account for about 40% of the value added in Mexican vehicle exports.” (02/03/25)