What does Trump’s election mean for the Canadian economy?

“A tariff tends to boost prices, and it in the end raises costs, in order that’s one thing that now we have to be ready for,” he stated.

“It might tilt manufacturing mandates. A tariff makes items costlier, however on the identical token, it additionally will make inputs for the U.S. costlier.”

A report final month by TD economist Marc Ercolao stated analysis reveals a full-scale implementation of Trump’s tariff plan might result in a near-5% discount in Canadian export volumes to the U.S. by early-2027, relative to present baseline forecasts.

How may Canada reply to tariffs?

Retaliation by Canada would additionally improve prices for home producers, and push import volumes decrease within the course of.

“Slowing import exercise mitigates a few of the destructive web commerce influence on complete GDP sufficient to keep away from a technical recession, however nonetheless produces a interval of prolonged stagnation via 2025 and 2026,” Ercolao stated.

For the reason that Canada-United States-Mexico Settlement got here into impact in 2020, commerce between Canada and the U.S. has surged by 46%, in line with the Toronto Area Board of Commerce.

With that deal is up for evaluation in 2026, Canadian Chamber of Commerce president and CEO Candace Laing stated the Canadian authorities “should collaborate successfully with the Trump administration to protect and strengthen our bilateral financial partnership.”

“With a formidable $3.6 billion in every day commerce, Canada and america are one another’s closest worldwide companions. The safe and environment friendly circulate of products and folks throughout our border … stays important for the economies of each international locations,” she stated in a press release.