MI among states that would feel brunt of Mexico trade war

A man talks on his phone next to a collection of Mexican national flags, in Mexico City, Wednesday, Sept. 2, 2015. (AP Photo/Marco Ugarte)

LANSING, Mich. (WOOD) — If the United States gets into a trade war with Mexico, Michigan would feel the impact more than most states, a new report concludes.

The Great Lakes State would be the third most affected state by a trade war, according to a statistical analysis by WalletHub. Only Texas and Arizona would feel more of the economic squeeze, the publication says.

The data crunching site found Michigan tied with four other states for the highest percentage of total imports from Mexico. Michigan also tied with two other states for highest percentage of state GDP attributed to imports from Mexico.

Michigan exports to Mexico also play a major role in the state economy, according to WalletHub. Our state ranked fourth in the nation for its share of state GDP created by exports to Mexico. Michigan also ranked fifth nationwide for its total percent of exports to Mexico.

One area that would be less affected by a trade war is Michigan’s workforce. According to WalletHub, Michigan ranks 44th in the country for the percentage of jobs reliant on trade with Mexico.

Experts are concerned President Donald Trump’s threat to overhaul the North American Free Trade Agreement and tax all Mexican imports by 20 percent to finance a border wall will trigger a trade war between the countries.

Mexico is the United States’ third-largest trading partner for goods, and the two countries did some $583.6 billion in total cross-border commerce in 2015, according to the Office of the United States Trade Representative. America buys about 80 percent of Mexico’s exports, with automobiles, electrical machinery and fuels topping a long list that also includes agricultural goods such as fruit, vegetables, wine and beer.


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WalletHub: Mexico trade war impact by state