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[Newly Updated] Talking Points: Cross-Border Trade

The Canadian and US flags, draped over each other.

How the U.S. Election affects Canada

The United States has imposed new tariffs on Canadian imports—25% on Canadian goods and 10% on energy exports. These measures, originally set to take effect on February 4, 2025, were delayed but are now in force. While we, along with the Canadian business community, had hoped the delay would lead to a reversal, businesses must now navigate the significant implications of these trade barriers. 

This decision is a stark escalation in trade tensions and signals a critical need for Canada to address vulnerabilities in its economic policies and its relationship with the US. 

  • Canada and the US share one of the most integrated and beneficial trade relationships globally. Trade between the two nations amounts to over $950 billion annually, supporting millions of jobs on both sides of the border. 
  • The automotive sector exemplifies this shared prosperity, with parts crossing the Canada-US border up to eight times before final assembly. 

View the full report here:

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Together, let's continue to fuel this critical conversation. To share your industry insights and help shape our ongoing advocacy priorities, email us at media@bot.com.

THE BOARD’S RECOMMENDED STRATEGIC ACTIONS

1. Engage Early and United:

  • A proactive “Team Canada” approach is essential. Efforts must begin immediately to engage allies and influencers within the US aligned with President Trump.
  • A cohesive, central message that Canada is committed to addressing bilateral concerns can help strengthen our position.

2. Prioritize Key Areas:

  • Energy and Natural Resources: Accelerate critical mineral projects and pipeline initiatives to align with US strategic priorities.
  • Security Collaboration: Increase investments in Arctic defense and border security.
  • Policy Coordination: Avoid unnecessary trade conflicts, such as the current issue with the digital services tax, by aligning better with multinational norms.

3. Boost Productivity:

  • Canadian businesses must urgently adopt productivity-enhancing technology and innovation to remain competitive. Our Business Council of Toronto (Opens in a new window) agenda has been banging this drum for over a year and now is the time for more urgent action. Government support in this area will likely be necessary to drive rapid change.

Key Facts