Despite all the polls and analysis in the run-up to an election, you can never be sure how an election result might swing. However, no one could predict how decisively Republican president-elect Donald Trump would storm home to victory. Although he didn’t win an outright majority over his Democratic rival Kamala Harris, Trump is looking strong and must now win over the House of Representatives if he and his government are to have the entire say in how to run the country.

Like all incoming states people, Mr Trump has ideas about what he wants to do while in charge. One of his measures will be to sign an Executive Order that imposes tariffs on specific countries. Tariffs, which some in power use to protect their nation’s economy, can cause tensions and resentment between countries and trigger a trade war between them as the other party retaliates to the protectionist measure(s).

How could tariff imposition affect neighboring Canada?

Leaders in Canada are fearing the impact and believe Canada must do anything it can to persuade Mr Trump from imposing the tariffs. There’s a massive fear the measures would push up inflation and harm jobs in Canada. Justin Trudeau, the Canadian Prime Minister, has already been in touch with Mr Trump and acknowledged that the relationship between the two countries needs working on. Some provincial leaders have expressed their fears for the economy and the need for all the Canadian provinces to be united in responding to Mr Trump.

The Republican has long harbored a desire to address immigration issues and how people are crossing the borders into the US. He also wishes to tackle the flow of illegal drugs into the country. For him, higher tariffs are an opportunity to address both. Allies of the president-elect have commented that he views the tariffs as a bargaining tool in negotiations with foreign countries.

The proposals have already started to take their toll. The value of the Canadian dollar has begun to decline against the American one.

The impact on different industries

Naturally, many different industries in the nations affected will be cowering at what the plans could mean for them.

Casinos

The online casino world has allowed many people to transcend borders and play their favorite casino games without doing it in the country the online casino has obtained its license. However, Canadians who have been playing at casinos licensed by US authorities may think twice, as they may see the price of their gaming go up. They may prefer to play at alternative licensed casinos instead. For those looking for an online casino in New Brunswick, they are now spoilt for choice with providers offering enticing bonuses and offers.

Autos

Car assembly plants could lose out because of the tariffs. The company Stellantis owns two car assembly plants in Ontario. At Windsor, it makes Chrysler models, and at Brampton, which is being retooled and scheduled to begin producing a new Jeep model again. Neither will be looking forward to the increased in tariffs for exporting their products to the USA.

Auto companies are already wrestling with cost cuts. The imposition of the tariffs would see the price of their cars increase in the US, which may see sales fall. Of course, the announcement of the tariff has seen the shares of some car manufacturers drop.

Renewables

Advocates for renewables are fearing higher tariffs will stall action against climate change. Electric vehicles and related products will all suffer an increase in price, which could put consumers off buying them. Companies that need to buy batteries for electric vehicles, home solar systems, or solar storage plants will also have to contend with higher costs.

Steel

For most of the last century, the US used to dominate steel production, but now it’s a heavy importer of the metal. Canada is the largest steel exporter to the US and exported nearly $8 billion worth last year to the US. Steelmakers in Canada and companies in the US who use Canadian steel can expect to see heavy increases in costs. That could mean another $1.6 billion for Canadian steel.

President-elect Donald Trump’s plans to hike import tariffs is a move neither consumers in the US nor companies that export their products to the US will welcome. It could be damaging for businesses and for economies. Markets are already responding badly to the news, so companies are likely to devise plans to brace themselves for the economic storm they look likely to have to endure.