President Trump has regained the White House. The two main US election issues focused on immigration and the economy. Will this hurt Canada financially?
During the campaign, Trump suggested at deporting millions of illegal aliens that poured into the US through its southern border. Will this cause many of them to seek refuge in Canada, even if it requires crossing the border illegally? This is an important question politicians and citizens alike are asking since Trump won back the White House on November 5.
More people will require housing and other services, which could increase pressure on our country because we are not able to accommodate our existing population.
Trump’s election slogan was “Make America Great Again” and one strategy proposed was to reduce goods that the US imports.
If Trump decreases income tax rates in the US that might put pressure on our federal government to do the same. Countries compete for businesses and a significantly lower tax rate in the US might encourage some of our businesses to relocate.
Trump has been publicly critical of Canada for not spending enough money on defense. He has suggested that any NATO country spending less than two per cent of its gross national product on defense might not be supported if there was aggression from another country.
The timing of potential financial pressure from the US is a concern here at home. Our finances, including soaring debt levels, are in poor shape.
These are challenging times and our government needs to have a strategic plan in place to adapt and reinvent.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com
