Canadian Chamber of Commerce sends stark warning about U.S. trade relationship

A new report from the Canadian Chamber of Commerce is sending a stark warning ahead of the U.S. presidential election, saying protectionist policies like Donald Trump's proposed tariffs could damage economies on both sides of the border.

The report authored by Trevor Tombe — an economics professor at the University of Calgary — said while most Canadians recognize the importance of trade with the U.S., Americans don't have the same understanding about how intricately the two countries are connected particularly at a time of geopolitical uncertainty.

Tombe says tariffs could have huge impacts on two of the largest economic sectors in Canada: Alberta energy and Ontario automotive production.

Canadian officials and business groups have been meeting with Democratic and Republican counterparts across the U.S., making sure Canada is prepared for any outcome of the November election.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade. Whoever takes the White House will be in charge during the review of the Canada-U.S.-Mexico agreement in 2026.

«Both parties have moved in protectionist directions for some time,» Tombe said.

While Vice-President Kamala Harris is expected to stay close to the Biden administration's path on relations with Canada, last month she highlighted her opposition to the NAFTA replacement that was negotiated under the Trump administration, saying it allowed major auto companies to outsource American jobs.

Tariff proposal causes concern

Meanwhile, Trump has signalled his plans to impose a 10-per-cent, across-the-board tariff on imports if he gets a second term.

That proposal caused concern on both sides of the border.

Kirsten Hillman, Canada's