Canada's business world is buzzing with concern over the upcoming U.S. election. A recent report from the Canadian Chamber of Commerce warns that protectionist policies proposed by both presidential candidates could seriously damage the economies of both nations. This is due to the strong ties and interdependence between Canada and the U.S., making any tariffs particularly impactful. A key worry is how these policies might affect the review of the Canada-U.S.-Mexico agreement scheduled for 2026.

Experts fear that such measures could disrupt supply chains and lead to significant economic losses. For example, a 10% tariff on imports could cost Canada's economy around $30 billion per year and the U.S. about $125 billion. If other countries respond with their own tariffs, the situation could worsen, potentially leading to a 1.5% drop in Canadian incomes. History, such as the 1971 "Nixon Shock," shows that protectionist policies can have long-lasting effects.

The report underscores the significance of the relationship between Canada and the U.S., highlighting how massive and beneficial it is for both countries. Both nations stand to lose if protectionist measures are implemented without careful consideration of their broader economic impact.

What the U. S. Election Could Mean for Canadian Businesses

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