Trump's protectionism could cut Canada’s GDP 1.5 percentStaff Writer | January 30, 2017
A new bank report says the protectionist policies of Donald Trump’s U.S. administration could cut the growth of Canada’s gross domestic product by 1.5 percent.
Trade The National Bank Financial Markets
The analysis by the National Bank Financial Markets says Trump’s arrival could be good for Canada’s energy sector because of plans to revive the Keystone XL pipeline.
It says that will be offset by big losses in exports because of possible changes to the North American Free Trade Agreement and proposed new border taxes.
The report says if the U.S. imposes a 10 percent border adjustment tax on imports, it would result a 9 percent drop in Canadian exports, causing a 1.5 percent decline in GDP growth.
The report says Ontario and New Brunswick could be hit the hardest because their growth has come mainly from exports to the U.S. and not internal trade with other provinces. ■