Canada lists the 41 US cities in red states that will be hit hardest as it retaliates in tariff war
Cities in red states will be most hurt by a trade war with Canada, new analysis has revealed.
Data released Thursday by the Canadian Chamber of Commerce detailed the areas in the US most dependent on exports to its northern neighbor.
It found the most vulnerable cities turn out to largely be in the states that helped Donald Trump return to the White House — a sign of the possible political risk he is taking with his controversial tariff plans.
San Antonio, Texas, and Detroit, Michigan, topped the list of 41 US metro areas that would be hardest hit.
The findings show that the 25 percent tariffs on Canada and the country's retaliations could inflict meaningful damage in key states for US politics.
The analysis was conducted before the Republican president announced Wednesday that he was placing additional 25 percent tariffs on imported cars and parts starting on April 3.
Trump said the tariff on foreign-made cars would spur business in the US.
'It will lead to tremendous growth in the automobile industry,' he told reporters in the Oval Office.
San Antonio, Texas, and Detroit, Michigan, topped the list of 41 US metro areas that would be hardest hit by Canadian tariffs (Pictured: An autoworker in Detroit)
'The consequences of today's escalation in this destructive tariff war will not be contained to Canada, as much as the US administration would like to pretend,' said Candace Laing, president and CEO of the Canadian Chamber of Commerce.
'Throwing away tens of thousands of jobs on both sides of the border will mean giving up North America's auto leadership role, instead encouraging companies to build and hire anywhere else but here. This tax hike puts plants and workers at risk for generations, if not forever.'
Nearly half of what San Antonio exports, with its aerospace, auto and energy sectors, goes to Canada.
About 40 percent of what the auto-driven Detroit area exports also goes to Canada.
Trump's wins in Michigan, Pennsylvania and Wisconsin were crucial for his overall victory in November's presidential election.
Milwaukee and Pittsburgh also ranked in the top 10 for exposure to a trade war with Canada, the analysis revealed.
Other cities most dependent on exports to Canada include Kansas City, Missouri; Louisville, Kentucky; Nashville, Tennessee; Columbus, Ohio; Chicago; and Cleveland.
All of those states aside from Illinois backed Trump in the last election.
'The consequences of today's escalation in this destructive tariff war will not be contained to Canada, as much as the US administration would like to pretend,' said Candace Laing, president and CEO of the Canadian Chamber of Commerce
Canada's new Prime Minister, Mark Carney, has hit back against Trump's threats
Nearly half of what San Antonio, Texas, exports goes to Canada (Pictured: Trump at a Texas rally)
Trump has placed 25 percent tariffs on many goods from Mexico and Canada, with a lower 10 percent tax on energy products from Canada.
Some of those tariffs have been suspended or delayed, though they are set to fully hit in April.
Canadian leaders have warned that the US would suffer in the form of higher prices, fewer jobs and slower growth because of the trade war.
But an analysis by the Brookings Institution found that the economic pain would be more severe in Mexico and Canada because those countries are more reliant on the US in terms of trade.
Trump's reason for the tariffs is to stop illegal immigration and drug smuggling, though he has also said that he dislikes the trade deficit with both countries.
The President has also said repeatedly that he wants to make Canada the 51st state.
These comments and tariff threats has led some Canadians to boycott American cars, bourbon, and meat - and now they are skipping vacations in the US too.
Canadians have long been the top international travelers to the US.
Even a 10 percent drop in their travel spending could cost the American economy $2 billion and result in 14,000 job losses, according to the US Travel Association.
This scenario is already playing out, with Canadian air travel to the US down 13 percent in February, according to Statistics Canada.
Travel by car has also seen a sharp decline, with 23 percent fewer Canadians crossing the border on four wheels compared to the same time last year.
