Canada prepares for challenges under a second Trump presidency

Canada is reacting to Donald Trump's recent election victory with caution. Prime Minister Justin Trudeau emphasized the strong trade relationship between Canada and the U.S., worth about $1.3 trillion annually. Officials are concerned about potential tensions over defense spending and agricultural protections.

Trump's previous administration strained relations over trade policies, including tariffs on Canadian dairy products and demands for increased defense spending. Canada plans to triple its defense budget but has stated it will not meet NATO's 2% GDP target until 2032.

Despite concerns, Canadian officials highlight the benefits of the U.S.-Mexico-Canada Agreement, which replaced NAFTA. They are also focusing on cooperation in areas like energy and critical minerals, while preparing for possible tariff changes under Trump's leadership.