Impact of Trump's Tariff Threats on Canada

The proposed 25% tariffs by President-elect Donald Trump on imports from Canada and Mexico pose a significant risk to the Canadian economy. With a heavy reliance on the U.S. market, exporting $592.7 billion worth of goods in 2023, Canada would face catastrophic financial repercussions if these tariffs were enacted. Experts indicate that a blanket tariff could decrease Canada's real GDP by 2.6% annually, translating to an economic hit of approximately $2,000 per person. Especially vulnerable sectors like auto parts, which employ about 90,000 Canadians, would suffer immensely, as their profit margins would be decimated by such high tariffs.