Here is who will pay the highest cost of Trump’s Tariff War

Texas will probably suffer the most from Donald Trump’s tariffs, several economic analysts told Newsweek.

Newsweek was cautioned by several economists that Texas will be disproportionately impacted by Donald Trump’s tariffs.

Until narcotics, especially fentanyl, and all illegal aliens cease their invasion of our nation, the president-elect announced this week that he would impose 25% tariffs on all goods imported from China, Canada, and Mexico!

Trump’s tariffs on Mexico would have a significant detrimental effect on the US economy even if they are expected to increase consumer prices for a range of imported goods. In Texas, where most Texans voted for the incoming president who is imposing tariffs, they will make life harder.

Given Texas’s proximity to the integration of supply chains with Mexico, Ray Perryman, CEO of the financial analysis firm The Perryman Group, told Newsweek that the state will undoubtedly suffer from Trump’s tariffs.

According to our estimates, Texas would be disproportionately affected, losing around 370,000 jobs and $46.9 billion in annual gross state product, or 1.7% of the total, Perryman told reporters.

Perryman warned that 25% tariffs on all commodities from Canada and Mexico would cost the US economy an estimated $250.6 billion annually and eliminate 1.97 million jobs, or almost 1% of the country’s GDP.

Texas will be negatively impacted by the planned tariffs, according to Gary Clyde Hufbauer, a senior scholar at the Peterson Institute for International Economics, who spoke to Newsweek.

Mr. Jones cautioned that in addition to the rising costs of goods like beer, tequila, avocados, and mangos for Texans, the reduction in cross-border train and truck traffic will also result in many Texans losing their jobs. Additionally, Texas’s sales of consumer goods, cattle, gas, petroleum, and electricity to Mexico have decreased. Add to it a decline in Mexican travel to Texas.

The stakes could be high for both Texas and Mexico in light of Trump’s proposed tariffs, according to Tony Payan, director of the Baker Institute for Public Policy’s Center for the United States and Mexico at Rice University, who spoke to the Texas Standard.

The annual trade between the two nations is around $800 billion. According to Payan, intra-firm commerce accounts for $400 billion, or half of the total. That is, the exchange of parts between manufacturing companies that come from Mexico or the United States into Mexico to finish the vehicles and other traded items.

Payan went on to say that while he was not sure if Trump would follow through on his promise to impose tariffs, he thought the president-elect would eventually recognize the extent of the two economies’ integration.

Similar worries were voiced to Newsweek by Maxwell Marlow, director of research at the Adam Smith Institute, who claimed that Trump’s tariffs would be especially disastrous for regions like Texas where products cross borders several times throughout production.

Texas will suffer disproportionately from retaliatory tariffs that the United States should anticipate from Mexico, according to Marlow.

The chairman of Texas A&M University’s economics department, Professor Dennis Jansen, told Newsweek that retaliatory tariffs would be especially catastrophic because a staggering 29% of Texas exports go to Mexico.

The demand for Texas (and all U.S.) exports will decline even more if there is foreign retaliation, such as if Mexico fulfills its threat to increase taxes on commodities shipped from the United States to Mexico. Jansen informed reporters.

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