Any hopes that the potential border tax would focus only on Mexico were dashed when incoming Trump administration spokesman Sean Spicer said there would be no distinction between either of America’s neighbours.
Said Spicer, “When a company that’s in the U.S. moves to a place, whether it’s Canada or Mexico, or any other country seeking to put U.S. workers at a disadvantage,” Trump “is going to do everything he can to deter that.”
American vehicle imports from Canada are about double what they are from Mexico, and the industry is a key driver of Canada’s economy.
Overall, Canada has $541 billion in annual trade with the US.
Canada’s economic dependence on the US puts us into a difficult position. With our own domestic economy hamstrung by low growth due to over-regulation, overbearing government, and high personal taxes, Mexico has actually moved ahead of Canada in trade with the US.
Now, the incoming Trump administration is revealing just how little control we currently have over our own economy, as our domestic economic weakness puts us at the mercy of other nations.
That’s why the announcement that Canada could be hit by the Trump border tax is both a wakeup call and an opportunity.
Unless we put more money back in the hands of Canadians, we will lose further control of our destiny as a nation.
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