The industries at risk if Trump quits NAFTA
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The United States has a great deal to lose if it drops out of NAFTA, as 26% of imports come from the two partner nations. Canada and Mexico are its second and third largest trading partners, respectively. Here's a look at the industries that will be hit hardest if President Trump sends a NAFTA withdrawal notice.
Where things stand: The future of NAFTA hangs in the balance, with Mexico and Canada shutting down the hard line American renegotiations and President Trump hinting he might pull out of the deal entirely. Still, Mexican President Enrique Peña Nieto said Wednesday the other two countries will stay in NAFTA even if the United States abandons it.
Key takeaways:
- The auto and energy industries will be among those most affected, as vehicles, nuclear reactors and mineral fuel are three of the top goods imported from both Canada and Mexico.
- The United States stands to lose lots of business. Canada and Mexico are the top two recipients of U.S. exports.
- In 2016, the United States had a $12.5 billion trade surplus with Canada, but a $55.6 billion trade deficit with Mexico.
- Peña Nieto said that, if Trump backs out, trade between the United States and Mexico will continue and be governed by the World Trade Organization's rules.
Go deeper: What each nation wants from renegotiations; What the U.S. trades with other world powers
