BY THE NUMBERS: The Costs of Withdrawing from NAFTA

New Tariffs or Taxes Canada and Mexico Could Have Charged U.S. Exports Without the North American Free Trade Agreement

THE IMPACT ON U.S. BUSINESSES AND FARMERS

Analysis from The Trade Partnership from U.S. Census Bureau and UNCTAD’s Trade Analysis Information System data shows the following costs of not having NAFTA:

THE IMPACT ON U.S. EXPORTS IN KEY SECTORS OF THE ECONOMY

The same analysis shows the following costs of not having NAFTA for key sectors, the result of which would make American goods less competitive in Canada and Mexico relative to producers from other countries that have their own FTAs with Canada and Mexico — like Japan and the EU — and causing U.S. exports to decline: 

$508 MILLION ON MACHINERY EXPORTS

• U.S. machinery manufacturers exported $49 billion to Canada and Mexico in 2015. Without NAFTA, those exports could have faced up to $508 million in extra tariffs — including tariffs averaging 3.1% on HVAC and refrigeration equipment.