Canadian Business Associations Urge ‘Unified’ Strategy in Response to Trump’s Election Victory

November 6, 2024 TruthUSA

Multiple Canadian business groups are urging federal and provincial governments to align on economic matters following the election of Donald Trump, who has pledged to prioritize “America First” policies by imposing tariffs on imports from other countries.

“The US election results have significant implications for Canadian small businesses. We must prepare for another round of tough negotiations on the Canada-US-Mexico free trade agreement (CUSMA),” stated Canadian Federation of Independent Business (CFIB) President and CEO Dan Kelly on the social media platform X.

Trump, set to become the 47th president of the United States once again after defeating Democratic candidate Kamala Harris, renegotiated the North American Free Trade Agreement (NAFTA) during his initial term from 2016 to 2020. In an October 10 speech, Trump mentioned his intent to trigger the six-year renegotiation provisions of CUSMA by formally notifying Mexico and Canada.

Kelly emphasized the need for the Canadian government to enable small businesses to enhance their competitiveness by reducing taxes and bureaucratic hurdles, pointing out that Canadian oil producers may benefit from Trump’s support for the Keystone XL pipeline, which was rescinded by U.S. President Joe Biden upon taking office in 2021.

“CFIB will strive to highlight the mutual advantages of Canada-US trade for small businesses on both sides of the border,” he stated.

The Canadian Chamber of Commerce (CCC), representing over 200,000 businesses, urged the federal government to maintain a strong and mutually beneficial economic relationship with the United States, noting that the two nations engage in $3.6 billion in daily trade.

“The secure and efficient flow of goods and people across our border—enabled by CUSMA—remains essential for the economies of both countries,” stated CCC in a November 6 release.

The CCC highlighted the upcoming 2026 review of CUSMA, emphasizing the need for Ottawa to collaborate with the Trump administration to “preserve and strengthen our bilateral economic partnership.”

“By resisting tariffs and trade barriers that will only raise prices and harm consumers in both nations, Canada and the United States can bolster resilient cross-border supply chains that enhance our shared economic security,” the statement added.

Trump has proposed imposing tariffs ranging from 10 to 20 percent on all imports into the U.S., escalating to 60 percent for imports from China, and up to 100 percent for countries moving away from the U.S. dollar. During his previous term, Trump imposed tariffs of 25 percent on steel and 10 percent on aluminum imports from most countries, prompting Canada to retaliate before the tariffs were lifted in 2019.

Deborah Yedlin, President and CEO of the Calgary Chamber of Commerce, cautioned that a second Trump presidency would have “significant implications” for the province, warning that Trump’s “America First” strategy could pose challenges for Canadian businesses.

Yedlin expressed concerns that Canada’s energy, agriculture, and critical minerals sectors could face U.S. tariffs, calling for a unified “Team Canada” approach involving preparations for CUSMA renegotiations, enhancing trade infrastructure, and streamlining regulations.

“We also urge the federal and provincial governments to expedite the development of effective policies and measures to boost Canada’s economic growth and productivity, minimizing the potential impact of damaging trade policies,” Yedlin remarked.

Lisa Baiton, President and CEO of the Canadian Association of Petroleum Producers, commended Trump on his election victory and cited opportunities for collaboration between the two nations in providing affordable energy.

“We will collaborate with governments in Canada and the U.S. to ensure the energy sector continues to contribute to new investments, job creation, and a reliable supply of affordable energy for Canadians and Americans,” she added.

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