Canada’s first wave of counter tariffs on U.S. imports took effect on Tuesday, with more to follow, according to plans laid out by Prime Minister Justin Trudeau. U.S. Census Bureau data suggest North Dakota could be hardest hit among U.S. states, with over 80 per cent of its exports destined for America’s northern neighbour.
Trudeau says the first wave of Canadian tariffs will target $30 billion worth of U.S. goods, with further levies on $125 billion worth of products going into force in 21 days.
“Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” he said in a statement late Monday.
According to U.S. Census Bureau data compiled by the American online loan marketplace LendingTree, North Dakota is most vulnerable to retaliatory tariffs from Canada. The state exports US$7.2 billion worth of goods to Canada annually, representing over 81 per cent of overall exports. North Dakota top exports include petroleum and coal products, machinery, and agricultural products.
Maine has the next largest export exposure to Canada, according to LendingTree’s report, with 49 per cent of its exports heading north. Montana, South Dakota, and Michigan round out the top five.
In dollar terms, Texas is the largest exporter to Canada, at US$36 billion annually. The Lone Star state is followed by Michigan, Ohio, New York, and Illinois.
When it comes to Trump’s tariffs on U.S. imports from Canada, Montana is most exposed, with 92 per cent of its overall imports coming from Canada. Maine (69 per cent), Vermont (68 per cent), North Dakota (64 per cent), and Wyoming (55 per cent) are the top five by percentage of imports from Canada.
In dollar terms, Illinois tops the list at US$65.4 billion annually, followed by Michigan, Texas, New York and Washington.
Last month, a LendingTree survey of 1,999 U.S. consumers aged 18 to 79 found 44 per cent expect tariffs will negatively impact their finances. The remaining respondents were evenly split, with 28 per cent expecting a positive impact, and 28 per cent predicting no effect.
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
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