California is the fifth-largest economy in the world and is the country’s largest importer and second-largest exporter. The state relies heavily on trade with Mexico, Canada, and China, particularly for manufactured goods and agricultural products that employ Californians across the state. Over 40% of California imports come from Mexico, Canada, and China. Imports from these countries were $203.3 billion of the total $491.5 billion California imported in 2024.

Retaliatory tariffs will impact California businesses and exporters. Mexico, Canada, and China are California’s top 3 export destinations. Tariffs also hurt builders. The tariffs will affect access to important construction materials critical to rebuilding after the Los Angeles fires.