Trade War with Canada: Wisconsin Awaits Retaliation
Anybody familiar with the gravity model of trade would be unsurprised that Wisconsin (exports) a lot to Canada. Figure 1: Wisconsin goods exports to world (black, right scale), Canada (blue, left scale), Mexico (red scale), mn.2017$. Nominal data deflated by BEA deflator. Light orange shading denotes Trump administrations. Source: Census via ITA, BEA via FRED, […]
In a potential escalation of the trade war with Canada, Wisconsin is bracing for possible retaliation from its neighbor to the north. According to an analysis from Econbrowser, Wisconsin has been a significant exporter of goods to Canada, with the state's exports to the country dropping during periods of heightened tensions, particularly during the Trump administration.
The gravity model of trade suggests that Wisconsin's economic relationship with Canada is substantial, and the state may face repercussions if the trade dispute continues. Targets for retaliation reportedly include sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, many of which align with Wisconsin's industrial base.
The state, known for its dairy production and manufacturing, including companies like John Deere, may feel the impact of any retaliatory measures. As the situation unfolds, Wisconsin awaits the potential economic fallout from the ongoing trade dispute with Canada.
Brief written by urgent.news from Econbrowser's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
