In the next 10 minutes, you will fully understand how US elections impact Canada news. This is because changes in US leadership directly impact Canada.
We will focus on the two main scenarios where U.S. elections have the greatest effect; politics and the economy. One thing is certain the election of Donald Trump has had repercussions, and his decisions so far have shown that he was serious when he said his government would be strict.
Keep reading as we first discuss news about the political impact, followed by the economic effects. Let’s go!
Political Scenario (How US elections impact Canada news)
The 2024 U.S. presidential election was one of the most significant events of recent times. The race between Kamala Harris and Donald Trump did not only impact Americans but also many other countries, including Canada.
Now that we know Donald Trump won the election, let’s take a look at how this affects key issues such as the economy, security, immigration, and social rights.
The Role of Immigration and U.S. Borders
Immigration policy was one of the most crucial topics in this election. Trump has made his stance on immigrants very clear, further tightening immigration rules.
He has even carried out mass deportations of those living illegally in the United States.
It’s worth noting that Trump’s main opponent had an opposite approach. Harris maintained a more balanced stance and promised to make it easier for skilled foreigners to move to the U.S.
Although this does not directly impact Canada, there is still concern. Many undocumented immigrants in the U.S. see Canada as an alternative to avoid returning to their home countries.
It’s important to remember that most illegal immigrants come from developing countries such as Mexico, Paraguay, and Venezuela. Often, they see little opportunity for growth in their home nations and seek better alternatives for a better life.
Impact on Social Rights and Political Movements (How US elections impact Canada news)
Trump’s election not only has economic and diplomatic implications but will also influence discussions on racial justice, gender equality, and LGBTQIA+ rights.
In fact, some of Trump’s statements have sparked global controversy, especially his claim that there are only two genders (male and female). While this view aligns with a traditional scientific perspective, it has not been well received by the LGBTQIA+ community.
What to Expect for the Future of the U.S. on the Global Stage?
Trump promised and has already begun implementing increasingly strict measures, including recently cutting political ties with Ukraine.
Additionally, he has taken a strong stance against Europe’s neutrality regarding regional conflicts, particularly the war initiated by Russia.
It is clear that the American president’s focus is strictly on the United States and nothing else.
Economy
Political decisions have a direct impact on the market, and Trump’s tariff proposal is a prime example. The 10% tariff on Canadian products follows a strong trend of rising inflation in Canada.
The reason for this is that over 75% of Canada’s exports go to the U.S. But what are the real effects of this? Let’s analyze.
The 10% Tariff and Its Consequences
If implemented, this tariff could reduce Canada’s export activity, impacting the country’s Gross Domestic Product (GDP). According to economist Marc Ercolao, this measure could lead to a 2.4 percentage point drop in real GDP over two years.
At first glance, this number may seem small, but in practice, it translates into rising product prices, ultimately weakening the population’s purchasing power.
Additionally, there is a possibility that the tariff could increase to 20%, worsening the situation even further. However, there is an important detail: according to experts, even if the measure takes effect, it could be eliminated by 2027 following the extension of the USMCA.
Impact on Trade and Inflation
Canada could adopt a targeted and strategic retaliation strategy, selecting specific goods to tax—just as it did in 2018 when it imposed tariffs on products like whiskey, orange juice, and steel, directly impacting U.S. states.
The Canadian people have not remained silent in the face of these threats. In fact, the situation has sparked a somewhat positive response, increasing nationalism among Canadians.
This reaction is visible everywhere. For instance, many Canadians are now refusing to buy U.S. products as a clear message that they reject Trump’s trade policies.
If Canada continues to retaliate against the 10% tariff on its exports, the immediate side effect will be increased inflation. This is because import prices would rise, directly affecting consumers.
This situation has already had an impact, with the U.S. president stating that he will reconsider the tariff issue.
Although Canada is not a major economic powerhouse, it remains a strong U.S. ally. Recognizing the importance and historical ties between the two countries, Trump has begun to reconsider the measure.
Conclusion: How US elections impact Canada news
Donald Trump’s victory in the U.S. elections has brought significant changes to the political and economic landscape, with direct impacts on Canada.
On the political front, his strict stance on immigration raises concerns, particularly due to the increased flow of undocumented immigrants seeking refuge in the neighboring country. Additionally, the U.S. government’s positions on social and diplomatic issues have also created tensions.
Economically, the 10% tariff on Canadian products is already showing concerning effects. In response, the Canadian government has adopted a targeted retaliation strategy, which has strengthened internal nationalism and led to boycotts of American products, affecting trade relations between the two countries.
Given this situation, Trump has hinted that he may reconsider some of his measures, acknowledging the importance of the long-standing partnership between the two nations. The coming months will be crucial in determining whether this stance will be maintained or if adjustments will be made to preserve U.S.-Canada relations.