President Joe Biden, right, speaks as Republican presidential candidate former President Donald Trump, left, listens during a presidential debate hosted by CNN, Thursday, June 27, 2024, in Atlanta.
While geography has made Canada and the U.S. neighbours and economics have made the countries partners, the outcome of the 2024 U.S. presidential election is likely to put enormous strain on this partnership. With many Canadian companies relying on relatively free and unfettered access to the U.S. market as part of North American value chains, it is critical that Canadian companies prepare themselves for what may come.
By now, many are aware of the possible impact from a second Trump presidency. Delighting in his self-description as a “Tariff Man,” Donald Trump promises to impose a universal 10 per cent tariff on all items imported into the U.S. Arguably, agreements already in place should protect Canadian goods from this unilaterally imposed tariff. Then again, one would be naïve to rely too strongly on a President Trump respecting the niceties of international law.
Many seem to assume a second term for President Biden represents smooth sailing for Canadian business and does not require much planning or forethought. Yet an April 2024 Scotiabank Global Economics reportfinds a negative impact on the Canadian economy regardless of who wins . President Biden may be a friend of Canada, but he is not exactly a free trader.