OTTAWA — Donald Trump’s mandate to toughen trade is expected to be stronger in his second term as U.S. president, posing different challenges for Canada than his first four years in the White House.

Finance Minister Chrystia Freeland projected calm Wednesday after the election, reassuring Canadians that the government is well-equipped to work again with the Trump administration.

But Goldy Hyder, president of the Business Council of Canada, warns that the past may not offer a good roadmap for dealing with a second Trump presidency.

He said the president-elect enjoys strong support from the American public for his tougher trade agenda, which includes promising to impose tariffs of 10 to 20 percent on all goods entering the United States. UNITED STATES.

If Canada wants to convince the United States that it is a reliable economic partner that deserves exclusions, Hyder said things like the summer rail shutdown and the recently announced emissions cap for the oil and gas sector gas won’t help.

“America is interested in its own economic security and its own national security, and it makes a list of friends and enemies and everything in between. And we need to make sure that we are at the top, not near the top, of the friends list,” Hyder said.

Freeland noted Wednesday that Canada entered into a renegotiated free trade agreement with the United States while Trump was president. She added that the federal government also shares Trump’s concerns about Chinese overproduction.

Hyder said it’s important to emphasize shared priorities, but it won’t be enough for the Trump administration to overlook areas of contention, including the Liberals’ digital services tax on tech giants. technology that earns revenue in Canada.

“Those other irritants that I mentioned will also get their attention, and I think much more seriously, particularly on defense,” he said, noting that an increase in defense spending would be an “imperative ” to avoid fueling the conflict. America’s anger.

Last February, Trump said he wouldn’t defend a NATO member that doesn’t spend the agreed amount on defense, suggesting he would encourage Russia to do “whatever it wants” to those countries. .

The Canada-United States-Mexico Agreement, which was negotiated during Trump’s first term to replace NAFTA, is also up for review in 2026. Trump has pledged to renegotiate it.

Stephen Tapp, chief economist at the Canadian Chamber of Commerce, said Trump would likely take a more combative stance in trade negotiations this time.

“The rates man is back,” Tapp said. “This is going to be terrifying for Canadian exporters and probably for Canadian policymakers who have to think about how to deal with Trump in a second term.”

Tapp says businesses are considering various scenarios and it’s “falling on” the government to do the same.

A report by Trevor Tombe, an economics professor at the University of Calgary and written for the Chamber of Commerce, estimates that a 10 percent U.S. tariff — on top of retaliatory tariffs imposed by other countries – would cost Canadians an average of $1,100 in lost income each year.

Just over 24 hours after Trump’s victory was declared, Trudeau revived a key cabinet committee on Canada-U.S. relations and named Freeland to chair it.

Freeland led negotiations on the new North American Free Trade Agreement signed during Trump’s first term.

Trade Minister Mary Ng said Thursday that the Canadian government has heard from U.S. companies that the tariffs could hurt them, too.

“I am confident that these American companies will share their views with their new administration,” Ng said.

“What we’re committing here to Canadian businesses is that you’ve seen us always defend Canadian interests, always defend Canadian workers. This will not change.

This report by The Canadian Press was first published November 7, 2024.

Nojoud Al Mallees, The Canadian Press