Trade war could endanger Louisiana’s strong relationships with Canada and Mexico

(The Center Square) — Louisiana has a relationship with Mexico and Canada valued at over $17 billion, according to multiple sources. If President Donald Trump maintains his newly announced tariffs, that relationship may weaken, especially when the two neighbors retaliate.

“This will be really impactful to not only US consumers, but US producers who produce both to the local market and for export,” said Philip Luck of the Center for Strategic & International Studies. “Estimates suggest that on average, Americans will see their buying power or their income go down by about $1,500 to $1,200 per year.”

In 2022, Louisiana was the largest recipient of Mexican imports, worth nearly $5 billion, led by oil, iron and steel and cars.

Export wise, Louisiana has done business in Mexico worth nearly $9 billion, led by oil, cereals and milling products.

The steady exchange of raw materials, industrial goods, and manufactured products highlights the deep economic ties between Louisiana and Mexico.

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According to the U.S. Trade Representative’s Office, Canada is Louisiana’s fifth largest export market.

The Great White North is also a significant investor in Louisiana’s economy, investing heavily across multiple sectors worth nearly $4 billion and establishing over 1,600 jobs

Higher duties could deter Canadian firms from expanding in the state, where they’ve poured hundreds of millions of dollars, while disrupting supply chains for industries like chemicals and timber. Any trade friction risks stalling growth and souring a partnership that’s fueled Louisiana’s economy.

“For those economies that rely largely on the US or these markets to sell into, this will be detrimental to the longer term growth,” Luck said.

As reported by the Wall Street Journal, Trump has granted a one-month exemption from the tariffs for automakers who comply with the United States Mexico Canada Agreement.

Gov. Jeff Landry did not comment on President Trump’s renewed trade war with the U.S’ two largest trading partners, but he was anything but silent on Tuesday when President Trump gave his address to congress.

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“Democrats sat on their hands as President [Trump] laid out his America First agenda that has already led to a safer and more prosperous Nation,” Landry wrote on X.

As is well established, Landry is not shy to criticize the feds. Also well established is Landry’s increasing proximity and fawning over President Trump’s agenda.

Landry did not respond to requests for comment.

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