The Decibel What Trump’s tariff plan means for Canada
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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.
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Economic Impact of Tariffs
- 25% tariffs on Canadian and Mexican goods could severely impact the Canadian economy, potentially causing a recession.
- Some sectors, like auto parts, would be existentially threatened due to erased profit margins.
Uneven Impact on Canadian Economy
- A 25% blanket tariff could reduce Canada's real GDP by 2.6% annually, impacting each person by about $2,000.
- The impact won't be uniform; some sectors like oil and auto parts would be hit harder than others.
Business Community Reaction
- The Canadian business community is deeply concerned about these potential tariffs and wants the government to intervene.
- Some recall Trump's previous term, noting his bluster doesn't always translate into action, while others see this as a dire economic threat.