Trump's election raises concerns about impact on Canada-U.S. trade relations
Donald Trump’s return to the White House raises concerns about his protectionist policies and their impact on Canada-U.S. economic relations. Business leaders worry that his proposed 10% tariff on American imports could harm the Canadian economy, potentially costing $30 billion annually.
With over 77% of Canadian exports going to the U.S., the manufacturing sector is particularly vulnerable. Economists warn that broad tariffs could lead to inflation and recession, affecting consumers and increasing production costs in both countries.
Trade between Canada and the U.S. reached over $960 billion in 2022. Experts suggest that while tariffs could reduce Canadian exports by nearly 5% by 2027, lessons from Trump’s first term may help mitigate the worst effects.