Canadian reaction to the news that Donald Trump will return to the White House has been mixed. Certainly, the president-elect’s protectionist stance is casting a spotlight on what effects his return will have on Canadian-American economic ties.
Prime Minister Justin Trudeau was quick to send a message of congratulations. Trudeau, who is facing re-election himself next year, spoke with reporters in Ottawa.
“We’ve been preparing for this. We’re going to make sure that this extraordinary friendship and alliance between Canada and the United States continues to be a real benefit to Canadians and people around the world.”
Canadian business leaders are concerned about Trump’s promise to introduce a universal ten-percent tariff on all foreign goods entering America. A recent report from Canada’s Chamber of Commerce suggested that a blanket tariff of 10 percent would shrink the Canadian economy by about $30 billion annually through incurred economic costs.
Since the trilateral Canada-U.S.-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 percent. That’s according to the Toronto Region Board of Trade. Kirstin Hillman, Canadian Ambassador to the U.S., spoke from Washington to say that the USMCA, which was negotiated by Donald Trump in his first term, continues to be successful.
“Former President Trump, when he was the president, renegotiated the NAFTA. From Canada’s perspective, that’s the deal that we have. Those are the rules that prevail between our two countries. We have more trade between our two countries than ever in the history of our two countries. It’s doing exactly what it’s meant to do. We’re going to have to sit down and have those conversations with President Trump in his second mandate, and I think we’re ready for it. I think we have a lot of very clear and cogent facts to bring to the table.”
Economists on both sides of the border have repeatedly warned that Trump’s tariff plan will cause inflation and possibly a recession.
As well, a promise that President-elect Trump has made repeatedly revolves around strong deportation measures and illegal border-crossings. Kirsten Hillman said that over the past number of years, Canada has strengthened its cooperation with U.S. border officials.
“We have stepped up our cooperation with the Americans on our border. The Treaty allows both of our countries to return asylum seekers back to the other country at ports of entry or between the borders. The Trump administration, when they were last in office, they were very eager to maintain a strong and reliable border. They only have two borders. One of them causes them a fair bit of challenge. One of them does not.”