Canadian business groups say Trump’s second term may bring different risks for Canada

By Nojoud Al Mallees, The Canadian Press on November 7, 2024.

OTTAWA – Donald Trump’s mandate to get tough on trade is expected to be stronger in his second term as U.S. president, posing different challenges for Canada than his first four years in the White House.

Finance Minister Chrystia Freeland projected calm on Wednesday after the election, reassuring Canadians that the government is well-equipped to work with a Trump administration again.

But Goldy Hyder, president of the Business Council of Canada, is warning the past might not offer a good road map for dealing with a second Trump presidency.

He said the president-elect has a strong endorsement from the American public for his tough-on-trade platform that includes a promise to impose 10 to 20 per cent tariffs on all goods flowing into the United States.

If Canada wants to convince the U.S. it’s a reliable economic partner worthy of carve-outs, Hyder said things like the summer rail stoppage and recently announced emissions cap on the oil and gas sector won’t help.

“America is interested in its own economic security and its own national security, and it is making a list of friends and foes, and everything in between. And we need to make sure that we are on the top, not near on the top, of the friends list,” Hyder said.

The Canada-United States-Mexico Agreement, which was negotiated during Trump’s first term to replace NAFTA, is up for review in 2026. Trump has vowed to renegotiate it.

Stephen Tapp, the chief economist at the Canadian Chamber of Commerce, said Trump will likely take a more combative stance on trade negotiations this time.

“The tariff man is back,” Tapp said. “This is going to be terrifying for Canadian exporters and probably for Canadian policymakers to wrap their heads around how to deal with Trump in a second term.”

Trade Minister Mary Ng said on Thursday the Canadian government has heard from U.S. businesses that they’re concerned tariffs would hurt them as well.

“I trust that those American businesses will share their views with their new administration,” Ng said.

“What our commitment here is to Canadian businesses, is you’ve seen us always stand up for Canadian interests, always stand up for Canadian workers. That won’t change.”

This report by The Canadian Press was first published Nov. 7, 2024.

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