Donald Trump’s policy stances toward Canada and Europe have historically been characterized by protectionist measures, notably the imposition of tariffs and a preference for bilateral agreements over multilateral frameworks. These approaches have had significant ramifications for global markets, particularly in sectors heavily reliant on international trade.

Impact on Canada:

During his previous tenure, Trump advocated for the renegotiation of the North American Free Trade Agreement (NAFTA), culminating in the United States-Mexico-Canada Agreement (USMCA). While the USMCA preserved much of NAFTA’s framework, it introduced stricter rules of origin for automobiles and adjustments in dairy market access, affecting Canadian exporters. RBC Capital Markets noted that Trump’s protectionist trade policies, including tariffs on steel and aluminum, prompted Canada to seek diversification through agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to hedge against U.S. trade uncertainties.

In the energy sector, Trump’s administration’s stance on environmental regulations and pipeline approvals influenced cross-border energy projects, impacting Canadian energy exports to the U.S. RBC Capital Markets highlighted that Trump’s pledge to rescind unspent funds under the Inflation Reduction Act, if re-elected, could…