These U.S. Cities Could Take the Biggest Hit from Canadian Tariffs
The trade tension between the U.S. and Canada just got more serious after President Donald Trump announced a 25% tariff on auto imports. His goal? To boost American car production. But the move is putting some U.S. cities at major economic risk.
Canadian officials aren’t happy. Prime Minister Mark Carney called it a “direct attack” and promised to protect Canadian workers and businesses. Cars are Canada’s second-biggest export, and previous U.S. tariffs on steel have already impacted the country. Now, with Trump pushing his “America First” approach, he’s making it clear: “We don’t need their lumber, we don’t need their energy. We don’t need their cars.”
But a new report from the Canadian Chamber of Commerce says that while Canada depends on the U.S. for 75% of its exports, the U.S. still relies on Canada for about 18% of its own. And some American cities are way more vulnerable than others when it comes to these new tariffs.
The U.S. Cities Most Affected by Canadian Tariffs
1. San Antonio, TX
San Antonio tops the list as the city most dependent on exports to Canada. With a strong automotive, aerospace, and oil refining industry, it sent $12.8 billion in goods to Canada last year. Texas as a whole exported $36.6 billion, making Canada one of its biggest trade partners.
2. Detroit, MI
No surprise here Detroit is Motor City, home to Ford, GM, and Stellantis. The auto industry relies heavily on trade with Canada, and with new tariffs in place, things could get messy. The Ambassador Bridge alone sees over $300 million in goods pass between Detroit and Windsor daily.
3. Kansas City, MO
Kansas City ships about 40% of its products to Canada, adding up to nearly $4 billion in exports. The city also has strong trade ties with Canada, and its mayor recently met with Winnipeg’s mayor to discuss ways to keep business flowing.
4. Louisville, KY
With an economy tied to car manufacturing, Louisville exports close to $4 billion in goods to Canada. In 2024, Kentucky as a whole sent $9.3 billion in products north, making Canada its biggest international customer.
5. Nashville, TN
Tennessee sent $7.8 billion in goods to Canada last year, and the state has already started feeling the impact. Canadian airline Flair Airlines even canceled summer flights to Nashville, citing political tensions as a reason.
With tariffs set to take effect in April, these cities could be in for some economic turbulence. Whether trade relations between the U.S. and Canada improve remains to be seen, but for now, businesses in these areas are bracing for impact.