Donald Trump’s victory sparks concerns over ripple effect on Canadian economy
Posted November 6, 2024 8:32 am.
Last Updated November 6, 2024 8:50 am.
As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.
Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.
In some speeches, Trump has mentioned even higher percentages. He promises to reinstitute an August 2020 executive order requiring the Food and Drug Administration to buy “essential” medications only from U.S. companies. He pledges to block purchases of “any vital infrastructure” in the U.S. by Chinese buyers.
A Canadian Chamber of Commerce report suggests those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
American economists have warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.
More than 77 per cent of Canadian exports go to the U.S.
The Toronto Region Board of Trade says that since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent. That deal is up for review in 2026.
