With every new administration come new policies, and the recently-anointed President Trump’s government is no exception. And, although Trump has been outspoken about some of his planned changes, it’s still not clear if or when they will become reality.
Recent developments such as an “America First” approach to jobs and investment, and talk of “renegotiating” NAFTA have left many Canadian companies with uncertainties about their relationship with our neighbours to the south. Trump’s actions and vague promises have created more questions than answers.
Canadian companies doing business with the U.S. can take comfort in the fact that Canada is America’s number-one trading partner and this is unlikely to change. U.S. trade and investment with Canada directly supports over 2.3 million American jobs.
According to Economic Development Canada, the crown corporation that serves as Canada’s export credit agency, new opportunities could be on the way for Canadian exporters, owing to factors such as increased consumer confidence in the U.S., pent-up demand, and plans for renewal. These factors are likely to benefit Canadian companies, particularly those involved in infrastructure, oil and gas, and retail.
In late 2016, consumer confidence in the U.S. rose to its highest level since 2001 and business confidence is also up. When consumers and businesses feel optimistic, they are more likely to spend, and increased spending would have a positive impact on markets worldwide, including accruing benefits to Canadian businesses.
To top it off, President Trump’s call to rebuild American infrastructure and expand energy resources will also create opportunities for Canadian companies as demand will likely outstrip the ability of U.S. suppliers to fill this need on their own.
To better understand how changes under the Trump administration may impact your business, seek out advice from a professional in international trade. Cole’s trade and customs professionals have their ears to the ground and are watching for new developments that can affect our clients. Email us today to take the guesswork out of your import and export business.