Subtitle:
Plan to penalize foreign imports may strain cross-border trade and threaten American investments
Content:
Former U.S. President Donald Trump’s proposal for a sweeping “revenge tax” on foreign imports has raised alarms in Canada, with experts warning it could deal a heavy blow to Canadian exporters — and risk serious economic consequences for the United States itself.
The proposed tariff plan, aimed at penalizing countries that Trump claims take unfair advantage of U.S. markets, could see a flat import tax imposed across a wide range of goods, including those from Canada. While Trump says the move would boost American manufacturing, trade analysts caution it could trigger retaliatory measures and disrupt longstanding economic ties.
For Canada, the implications are serious. With nearly 75% of Canadian exports heading to the U.S., sectors like auto manufacturing, agriculture, and raw materials could face new barriers.
“This kind of tax would not only hurt Canadian businesses, but also U.S. consumers and companies that rely on Canadian goods and supply chains,” said an Ottawa-based trade advisor.
The plan also threatens to undercut the spirit of the USMCA trade deal and could prompt Ottawa to explore countermeasures if Canadian jobs and industries are put at risk.
Meanwhile, U.S. economists warn the tax could backfire by driving up prices domestically and deterring foreign investment, especially in sectors that rely on open North American trade.
As both countries prepare for an election season filled with high-stakes economic debate, Canada is watching closely — and bracing for potential fallout from a policy that may hurt both sides of the border.