If the North American Free Trade Agreement (NAFTA) is terminated by President Trump, the immediate impact will be an increase in tariff rate for textile and apparel (T&A) products traded between the three NAFTA members from zero to the most-favored-nation (MFN) rates applied for regular trading partners. In 2017, the average applied MFN tariff rates for textile and apparel were 7.9% and 11.6% respectively in the United States, 2.3% and 16.5% in Canada and 9.8% and 21.2% in Mexico (WTO Tariff Profile, 2017).
Below is NAFTA members’ average applied MFN tariff rate in 2017 for chapters 50-63, which cover T&A products:
Data source: World Trade Organization (2017); US International Trade Commission (2017)
by Sheng Lu
Related article: What Will Happen to the U.S. Textile and Apparel Industry if NAFTA Is Gone?
FASH455 Global Apparel & Textile Trade and Sourcing 
“If the North American Free Trade Agreement (NAFTA) is terminated by President Trump, the immediate impact will be an increase in tariff rate for textile and apparel (T&A) products traded between the three NAFTA members” It seems to me that an increase in tariff rates will impact the amount of trade between these companies. Would it cause enough of a decrease in trade where the economy would be impacted?
“It seems to me that an increase in tariff rates will impact the amount of trade between these companies. ” why is that?