Trump 2.0 and Canadian Provinces

As the political landscape in the US stumbles towards a Trump return, Canadian provinces find themselves in a familiar position of preparing for a tornado and praying for a chinook. The first Trump administration ushered in a period of significant uncertainty that tested provincial leaders and their economic development agencies active in the US. As the sequel approaches, it’s crucial for jurisdictions aiming to attract US investment to keep their heads out of the sand. 

Trump 1.0 

The inaugural Trump presidency provided a unique opportunity for provincial governments to show their ability to improvise. Sudden tariff announcements and threats of agreement withdrawals became the new normal, forcing provinces and businesses to develop more flexible economic strategies. Adaptability became not just a virtue but a survival skill.  

Certain industries found themselves particularly vulnerable to U.S. trade actions. The steel and aluminum sectors faced significant tariffs, while long-standing disputes in industries such as softwood lumber intensified. This targeted approach highlighted the need for sector-specific risk assessments and mitigation strategies. Conversely, there was a notable uptick among US tech companies interested in expanding to Canada, both to relocate employees and also take advantage of more friendly immigration policies. Cities that had been active in the sector and had established long-standing relationships with tech leaders and venture capitalists were well-positioned to capitalize on this opportunity. Looking at you Waterloo, Toronto and Montreal.

Read the full post on our States of Trade blog.