These Are the U.S. Cities Most Vulnerable to Canadian Tariffs, a New Report Finds

The ongoing trade war between the U.S. and its neighboring allies has escalated further after President Donald Trump announced Wednesday that he would be imposing a 25% tariff on auto imports.

The act, which the President issued in an attempt to bolster domestic automobile production, adds to increasing tensions between the U.S. and Canada. The Administration has threatened Canada’s sovereignty by suggesting that Canada becomes the 51st state and referring to the former Canadian Prime Minister Justin Trudeau as a “governor.”

Officials of the U.S.’ northern neighbor have continuously called on the President to pause tariffs between the two allied nations. “This is a very direct attack,” said Canadian Prime Minister Mark Carney on Wednesday. “We will defend our workers. We will defend our companies. We will defend our country.”

Autos are Canada’s second-largest export. Previously announced 25% steel tariffs also pose a risk to Canada, as it is one of the biggest steel import sources for the U.S., per the International Trade Administration.

Trump, as part of his “America First” policy, has signaled that he wants to stop relying on other countries to produce local goods. “We don't need their lumber, we don’t need their energy. We have more than they do. We don’t need anything. We don’t need their cars. I’d much rather make the cars here,” Trump said earlier in March. “Now, there’ll be a little disruption, but it won’t be very long. But they need us. We really don’t need them.”

The White House said on Wednesday that existing trade agreements between the U.S. and its neighbors have not “sufficiently mitigated the threat to national security posed by imports of automobiles and certain automobile parts. These new tariffs aim to ensure the U.S. can sustain its domestic industrial base and meet national security needs.”

But U.S. dependency on Canadian exports is significant, standing at about 18%, according to a newly-published report by the Canadian Chamber of Commerce, titled “Which American Cities Are the Most Export-Dependent on Canada?” That statistic is much smaller than Canada's export reliance on the U.S., which lies at 75%, but the Chamber’s research suggests that many U.S. cities stand to be affected by tariffs between the two countries.

With Trump’s tariffs set to be implemented in April, here are the U.S. cities that would be most vulnerable to the impact of Canadian tariffs, per the Canadian Chamber of Commerce’s report.

San Antonio

San Antonio, Texas, topped the list as the city that is most export-dependent on Canada, and thus would be most impacted from reduced Canadian demand. The metro is home to the automotive, aerospace, and oil refining industries. Per the Office of the United States Trade Representative, in 2024, Texas exported $36.6 billion in goods to Canada, which came second only to Mexico.
Overall, in 2023, San Antonio-New Braunfels recorded $12.8 billion in goods exports.

Detroit

Despite the historic decline of the Rust Belt, once the heartland of the steel and manufacturing industry, Detroit, Mich.,—also known as “Motor City”—earned the second spot on the list. Detroit (and its suburbs) is home to the major three automakers: General Motors, Ford Motor Company, and Stellantis.

The White House clarified in a Wednesday fact sheet that companies that import vehicles through the United States-Mexico-Canada Agreement (USMCA) would remain tariff-free until Secretary of Commerce Howard Lutnick worked to build a process to “apply tariffs to their non-U.S. content.” Automakers are still seeking clarity on how they will be affected by tariffs.  

The city also has the Ambassador Bridge, which facilitates the transit of an estimated $323 million in goods across the Windsor, Canada-Detroit border on a day-to-day basis.

Read More: What Are Tariffs and Why Is Trump In Favor of Them?

Kansas City

Kansas City, Mo., which also harbors a car assembly plant, exports nearly 40% of their product to Canada. In total, their exports to Canada amount to nearly $4 billion of goods, per the report. Estimates from the state as a whole amount to $6.3 billion in goods to Canada in 2024, according to the Office of the United States Trade Representative.

Kansas City Mayor Quinton Lucas met with Winnipeg Mayor Scott Gillingham in February for a meeting that centered on trade relations. “Canada is a key part of Kansas City’s success in trade and economic development. I was honored to break bread recently with Winnipeg Mayor Scott Gillingham,” Lucas said in an Instagram post. “I look forward to visiting Winnipeg and supporting the strong relationship of our cities and countries.”