China, the European Union, Mexico, and Canada are among the United States’ largest trading partners and some of the most vocal opponents of the new tariffs.
Their leaders and citizens try to create the illusion they can do without the U.S. as a client, but the reality is much different.
This from thegatewaypundit.com.
There is no alternative market capable of replacing the American consumer. These countries already trade globally, and there is little room for world demand to grow enough to offset lost exports to the U.S.
Their dependence extends beyond trade. They rely heavily on access to U.S. dollars, U.S. investment, and foreign investment aimed at serving the American market. Europe has long depended on U.S. military protection. Now, as the U.S. steps back and demands they defend themselves, these nations face the added burden of expanding their own military capabilities, further straining their economies.
The U.S. is the EU’s largest export market, with many EU-based firms producing goods specifically for American consumers. The United States had a trade deficit of approximately $217 billion with the EU in 2024
Many U.S. and foreign firms operating in China, primarily to manufacture goods for export to the American market, are increasingly leaving, relocating to Southeast Asia or returning to the U.S. With many Southeast Asian countries now also facing tariffs, this trend is pushing firms to invest directly in U.S.-based production to maintain market access.
In 2024, Mexico exported about $505 billion in goods to the United States, making up 30% of Mexico’s GDP. The U.S. is by far Mexico’s most important trade partner, with the vast majority of its manufacturing and agricultural exports destined for the American market. In turn, the United States recorded a trade deficit of around $152 billion with Mexico in 2024.
The United States is also Mexico’s largest source of foreign direct investment, contributing over $16 billion in 2024. Mexico’s foreign exchange reserves reached $232.2 billion in late 2024. While the Bank of Mexico does not publicly disclose the exact currency breakdown, it is widely understood U.S. dollars comprise the majority, given Mexico’s deep economic integration with the United States.
In 2024, Canada exported about $412 billion in goods to the United States, accounting for roughly 77% of Canada’s exports and 19% of its GDP. The United States is also Canada’s largest source of foreign direct investment, accounting for 46% of total FDI, amounting to $438 billion as of 2022.
Canada’s foreign exchange reserves reached $110 billion in 2023, most of which are assumed to be held in U.S. dollars, reflecting Canada’s deep economic integration with the United States.
In recent years, China has strategically invested in Canada, aiming to leverage Canada’s access to the U.S. market. As of 2024, Chinese FDI in Canada totaled about $27.4 billion, concentrated in sectors like mining, technology, and manufacturing.
The bottom line is that each of these countries—and the European Union—are far more dependent on the United States than they are willing to admit. Recognizing this, President Trump has raised tariffs to historic levels as a means of forcing them back to the negotiating table and securing a better deal for the American people.
God speed Mr. President.
