Canada faces much stiffer economic competition from the US
Donald Trump and Justin Trudeau have spoken to each other for the first time since Donald Trump officially became the 45th President of the United States. According to the PMO, they discussed exports and the economic relationship between the two nations.
The PMO did not say how long the call lasted, but said a meeting between the national leaders could be in the works.
The call comes as Canada faces increased economic competition from the United States. Incoming US Commerce Secretary Wilbur Ross has said re-opening NAFTA is a top priority.
Additionally, the expected cut in the US Corporate Tax rate from 35% to 20%, will severely erode Canada’s current tax advantage in the business sector.
Finally, the potential for increased US import tariffs, and President Trump’s push for a new “Buy American” program, puts Canada’s export dependent economy at risk.
Trudeau is taking the wrong economic approach so far
The time between Trump’s election and inauguration was an opportunity for Canada to strengthen our domestic economy in preparation for the changes coming to the US.
Unfortunately, Trudeau has wasted that opportunity.
With the American export market increasingly uncertain, Canada must boost domestic demand, and make our companies more competitive.
That means cutting taxes to boost consumer spending, reducing regulation on businesses, scrapping the dangerous carbon tax, and increasing real infrastructure investment.
So far, Trudeau has done none of those things, and our economy is thus at increased risk.
A phone call won’t be enough to fix all of that.