A new report from Oxford Economics predicts a Trump presidency would severely harm Canada’s economy, inciting inflation and reduced GDP, while a Harris administration would provide only minor improvements through stable trade policies, leaving the economic landscape largely unchanged.
A recent report by Oxford Economics reveals the stark contrasts between the potential impacts of a Donald Trump and a Kamala Harris presidency on the Canadian economy. Should Trump win a second term, the outlook is grim; economic forecasts predict rising inflation, weakened GDP, and punitive tariffs adversely affecting key Canadian sectors. Conversely, a Harris administration would yield only modest improvements, maintaining the trade status quo and offering slight growth, but with no groundbreaking changes. While Harris’s policies may uplift bilateral trade with the U.S., Trump’s aggressive trade tactics could inflict lasting damage, igniting retaliatory tariff wars that would echo through the Canadian economic landscape. The report anticipates a divided Congress, suggesting major disruptions could remain at bay. Under Harris, Canadian exports might see slight upticks thanks to an open trade approach. In contrast, Trump’s protectionist stance could trigger an avalanche of tariffs, especially targeting Canadian exports like petroleum and automotive goods. These shifts propose a challenging terrain for Canada, where inflation and economic strain could accompany weaker investment and growth forecasts.
As the U.S. heads toward another election cycle, the global economic landscape hangs in the balance. The implications of a new presidency could ripple through to neighboring economies like Canada, which is deeply intertwined with U.S. policies. The Oxford Economics report serves as a crucial examination of these potential shifts, providing insights on how differing leadership could alter the course of trade relationships and economic growth for Canada in the coming years.
In summary, the contrasting visions of Trump and Harris offer two diverging paths for Canada. Trump’s presidency may lead to higher inflation and decreased GDP due to aggressive tariffs and restrictive trade policies, while Harris’s governance, albeit modest, would likely keep economic recovery on a steady yet slow upward trajectory, preventing deeper economic wounds. As Canada braces for potential changes, the only certainty remains its reliance on the outcomes of American governance.
Original Source: thehub.ca
