Canada Braces for Tariffs as Second Trump Presidency Looms

Canada's top financial bodies are bracing for heightened tariffs under a second Trump administration.

The Canadian Chamber of Commerce said the country's government needed to "deploy all its resources" to prepare Canadian businesses for changes in their trading relationship with their largest trading partner, the United States.

President-elect Donald Trump, who emerged as the winner of Tuesday's election, has made a tariff hike the core of his economic policy, proposing a 10 percent general rate for all countries.

An analysis by Canadian economists released in October indicated that the policy could harm the economies of both countries, with annual Canadian incomes predicted to fall by 1.5 percent and U.S. incomes by 1 percent if it were implemented.

Newsweek reached out to the Canadian government via email for comment.

Then-President Donald Trump (L) and Canadian Prime Minister Justin Trudeau at a NATO summit in England on December 4, 2019. The Canadian Chamber of Commerce warned that higher tariffs could negatively impact the economies of... Getty Images

In response to Trump's November 5 election, the Chamber of Commerce published a statement congratulating the Republican and committing to working with his administration while warning of the policy's negative economic impacts.

Chamber President Candace Laing said: "The Canadian Chamber of Commerce congratulates President-elect Donald Trump and all the candidates who won their elections in the U.S. Senate and the House of Representatives. We strongly reaffirm our commitment to working with the Canadian government to foster a robust and mutually beneficial economic relationship with the United States.

"With an impressive $3.6 billion in daily trade, Canada and the United States are each other's closest international partners. The secure and efficient flow of goods and people across our border−enabled by the Canada-United States-Mexico Agreement (CUSMA)−remains essential for the economies of both countries.

"As we approach the 2026 review of the CUSMA, Canada's government must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.

"By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security."

The statement echoed congratulations offered by Canadian Prime Minister Justin Trudeau, who said on social media: "Congratulations to Donald Trump on being elected President of the United States.

"The friendship between Canada and the U.S. is the envy of the world. I know President Trump and I will work together to create more opportunity, prosperity, and security for both of our nations."

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