Canada trade in limbo, Texas businesses navigate choppy waters – Houston Public Media

Key Points:

• Texas heavily depends on the USMCA trade agreement with Mexico and Canada, its top two trading partners, as the combined trade accounts for 12% of the state's economy and supports thousands of jobs.
• Since the Trump administration put USMCA under annual review and imposed tariffs on Mexican and Canadian imports, businesses face uncertainty that disrupts long-term investment and supply chains, particularly in manufacturing and energy sectors.
• Companies like Air Tractor, which relies on Canadian aircraft engines tariff-free under USMCA, warn that losing the agreement could force price hikes, job cuts, and significant order declines, threatening their survival.
• While the administration aims to boost U.S. manufacturing jobs, evidenced by Toyota's relocation of 2,000 jobs to Texas, most companies remain hesitant to invest amid trade uncertainty, leading to stalled projects in border regions.
• The automobile sector in Texas is especially vulnerable, with new factory investments being delayed or canceled due to tariff fears, which ultimately harm domestic companies by increasing costs and reducing competitiveness.