The Economic Impact of U.S. Tariffs on Mexico & Canada

Faculty Expert Series: How would a 25% tariff on imports from Mexico and Canada impact the U.S. economy? In this expert analysis, Professor Guillermo Garcia Sanchez from Texas A&M University School of Law breaks down the economic consequences of trade tariffs, their effect on supply chains, and the broader implications for global competition.

🌎 Key Topics Covered in This Video:
✔️ How Tariffs Work & Who Pays for Them – Understanding how tariffs are applied to imports and why they increase prices for U.S. businesses and consumers.
✔️ Impact on Key Industries – Learn how tariffs would affect agriculture, energy, and manufacturing, especially with Mexico supplying 23% of U.S. agricultural imports and Canada providing 50% of U.S. crude oil imports.
✔️ Why U.S., Mexico, and Canada Trade Is So Interdependent – Discover how 38% of a “Mexican” automobile’s components actually come from the U.S., showing that these aren’t just Mexican or Canadian goods—they’re North American products.
✔️ The Risk of a Trade War – How Canada and Mexico could retaliate with their own tariffs, disrupting supply chains and making U.S. exports less competitive.
✔️ The Future of the North American Economy – How nearshoring trends, supply chain shifts, and competition with China are shaping the economic landscape of the USMCA (United States-Mexico-Canada Agreement) region.
✔️ Long-Term Strategy for Global Competition – How North America can strengthen AI, technology, and microchip industries to remain competitive in a rapidly changing economy.

🔍 Why This Matters:
With globalization shifting, U.S. economic power depends on strategic trade relationships. Instead of isolating trade partners, how can the U.S., Mexico, and Canada work together to increase competitiveness against global giants like China?

More on Professor Garcia Sanchez's research: https://papers.ssrn.com/sol3/papers.c...

#TradeWars #USMCATrade #Tariffs #InternationalTrade #Economics #SupplyChains #EconomicPolicy #USMexicoCanada #TradePolicy #GlobalTrade