The Decibel
What Trump’s tariff plan means for Canada
Nov 28, 2024
In this discussion, Steven Chase, a Senior Parliamentary Reporter for The Globe and Mail, delves into the potential economic repercussions of President-elect Trump's proposed 25% tariffs on goods from Canada. He outlines how such tariffs could severely impact Canada's GDP and various sectors. Chase also highlights the Canadian government's response, including Prime Minister Trudeau's diplomatic efforts to maintain trade relations and the 'Team Canada' approach to counteract the threat. Additionally, provincial leaders' reactions are discussed as Canada navigates this tense political landscape.
21:18
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Quick takeaways
- Trump's proposed 25% tariffs on imports threaten to significantly disrupt Canada's economy, risking a 2.6% decline in real GDP annually.
- Prime Minister Trudeau's 'Team Canada' strategy aims to highlight the mutual benefits of trade while addressing Canada's economic interests amid rising tensions.
Deep dives
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.
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