Donald Trump’s victory in the US elections raises concerns for the Canadian economy

As Canadians wake up to the news that Donald Trump will return to the White House, the US president’s protectionist stance is shining a spotlight on the effect his second term will have on economic ties between Canada and the US.

Some Canadian business leaders have raised concerns about Trump’s promise to impose a 10 percent universal tariff on all U.S. imports.

A report from the Canadian Chamber of Commerce suggests these tariffs would shrink Canada’s economy, resulting in about $30 billion a year in economic costs.

U.S. economists have warned that Trump’s plan could trigger inflation and possibly a recession, which could have a ripple effect in Canada.

More than 77 percent of Canadian exports go to the US

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 increased by 46 percent. That deal is due for review in 2026.

This report by The Canadian Press was first published Nov. 6, 2024.