As U.S. President Donald Trump mulls imposing 25% duties on imports from Canada and Mexico on Feb. 1, focus has shifted to the sectors likely to bear the brunt of the tariffs.

North American car companies have operated across borders for three decades. Tariffs would raise prices and cost jobs in the short run, analysts say.

While much about the threatened tariffs is still unclear, experts predict they would be bad news for all three economies, with few winners.

Tariffs of 25 percent could hit goods from Mexico and Canada entering the U.S. as soon as next month, Donald Trump announced on Monday while signing executive orders, signaling the beginning of a potential trade war that could have major effects on the U.S. economy.

Canada vowed strong pushback while Mexico urged calm on Tuesday in the face of US President Donald Trump's trade threats that risk throwing their economies into disarray.

President Trump is using the threat of stiff tariffs on goods from Canada and Mexico to pressure the two nations to start renegotiating a continental trade deal.

President Donald Trump said Monday that he expects to put 25% tariffs on Canada and Mexico starting on Feb. 1, while declining to flesh out his plans for taxing Chinese imports.

This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Today, trade correspondent Eric Martin looks at the cost of potential tariffs on Canada and Mexico.

About 28%, or about $844 billion, of all U.S. imports in 2024 came from the two neighboring countries, data from the Census Bureau shows. The automobile industry accounted for imports of more than $202 billion from Canada and Mexico combined.

The tariffs would be in part a retaliation for policies that President Trump says has led to illegal immigration into the U.S.

The president said he will impose tariffs Feb. 1 on products from Canada, Mexico and China, countries that together account for more than a third of U.S. trade.