Texas Businesses Fear Fallout as USMCA Uncertainty Continues

Thousands of Texas jobs and the competitiveness of North America in the world economy are at risk due to uncertainty surrounding the future of the United States-Mexico-Canada Agreement (USMCA). With bilateral trade talks stalled, companies like Air Tractor, Inc. are bracing for potential tariffs that could force price increases and layoffs.

Air Tractor's president and CEO, Jim Hirsch, said that if USMCA were terminated, the return of a 25% tariff on Canadian aircraft engines would require him to increase the price of his planes by 12%. 'It'd be tough,' he said. 'It would take deep cuts in staff and supply.'

According to Tony Payan, director of the Claudio X. Gonzalez Center for the U.S. and Mexico at Rice University's Baker Institute, Trump is likely pushing for maximum leverage rather than aiming to kill the USMCA.