Weighted Mean Applied Tariff (percent) (Source: World Bank)
2020
2021
2022
2023
2024 Q1
2024 Q2
2024 Q3
GDP
-2.2
6.1
2.5
2.9
1.6
3.0
2.8
Personal Consumption
-1.70 -0.82
5.83 1.54
2.06 1.07
1.72 0.02 0.66 0.49
1.30 0.64 0.30
1.90 1.47 0.52
2.46 0.07 0.85
Investment
Government Spending
0.60
-0.05 -1.26
-0.20 -0.42
Net Exports
-0.24
-0.61
-0.90
-0.56
Canada and Mexico Prior to 2025, the United States, Mexico, and Canada Trade Agreement (USMCA) governed trade between the three countries since 2020, when it was implemented by the Trump Administration. The USMCA modified the North American Free Trade Agreement (NAFTA), the original trade agreement between the three nations implemented in 1994. Trade deals have a primary objective of reducing trade costs by lowering or eliminating tariffs and trade restrictions, making foreign markets more accessible for domestic industries. That changed in 2025, as the United States slapped new tariffs on goods imported from its big three trading partners – Canada, Mexico, and China. The U.S. and China had also reached a new trade agreement in 2020 implemented by the Trump Administration. Collectively, Mexico, Canada, and China comprise over 40% of total U.S. trade. In 2018 and 2019, the Trump administration initiated a wave of tariffs between the U.S. and several countries, with a focus on imports from China. Although tariffs broadly declined in 2020, tariffs on China generally remained and were kept in place by the Biden administration. The tariffs, combined with increasing political tensions with China, have had a major impact on sourcing by U.S. firms since 2017. Table 1 below shows the 2024 U.S. top trading partners in goods (excluding services), while Table 2 shows the 2017 top trading partners in goods. Table 1: 2024 U.S. Top Trading Partners in Total Trading of Goods (billions of dollars) (Source: U.S. Census Bureau) Rank Country Exports Imports Total Trade % of Total Trade - Total All Countries $2,019.5 $3,084.1 $5,103.6 100.0% 1 Mexico 334.0 505.9 839.9 15.8% 2 Canada 349.4 412.7 762.1 14.3% 3 China 143.5 438.9 582.5 10.9%
Table 2: 2017 U.S. Top Trading Partners in Total Trading of Goods (billions of dollars) (Source: U.S. Census Bureau)
Rank
Country
Exports $1,546.8
Imports $2,342.9
Total Trade
% of Total Trade
-
Total All Countries
$3,889.7
100.0% 16.4% 15.0%
1 2
China
130.4 282.4 243.0
505.6 300.0 314.0
636.0 582.4 557.0
Canada Mexico
3 14.3% In both 2017 and 2024, the top three trading partners in goods with the U.S. were Mexico, Canada, and China. However, the ranking of trading partners changed, with Mexico rising from third to first and China falling from first to third. In 2024, the top trading partner in goods for the U.S. was Mexico, comprising 15.8% of total trade with $839.9 billion. Total trade with Mexico increased 50.8% from 2017, with exports increasing 37.4% to $334.0
Central Wisconsin Report - Spring 2025
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