The Impact of Trump’s Victory and a Potential Conservative Government in Canada: A Rightward Shift in North America

With Donald Trump having secured a return to the U.S. presidency and the possibility of Canada’s Conservative Party regaining power, North America seems poised for a collective rightward shift. This significant political realignment is set to reshape Canada’s political and economic landscape, presenting both challenges and opportunities for Canadians, particularly immigrants.

Taxclinic.ca

11/20/20242 min read

a couple of flags on a flagpole
a couple of flags on a flagpole
The Spillover Effects of Trump’s Presidency

Trump’s return to the White House has reignited his “America First” agenda, which previously featured aggressive trade policies, restrictive immigration measures, and a rollback on climate action. These policies are already impacting Canada in the following ways:

1. Trade Policy Uncertainty

The USMCA, which replaced NAFTA during Trump’s first term, added complexities to Canada-U.S. trade relations. With Trump now back in office, heightened protectionism is expected, potentially creating even more challenges for Canadian exporters and businesses.

2. Energy Policy Alignment and Conflict

Trump’s staunch support for traditional energy sectors, including oil and gas, may provide an economic boost for Canada’s oil sands exports. However, this could put pressure on Canada’s domestic climate policies and intensify debates over meeting international environmental commitments.

3. Immigration and Talent Mobility

Trump’s stricter immigration policies could drive skilled workers and refugees to Canada as an alternative destination. While this influx could benefit Canada’s labour market, it also adds strain to immigration processing systems and public services.

The Prospect of a Rightward Shift in Canada

If Canada’s Conservative Party rises to power, the country’s political and economic policies may shift further to the right, mirroring Trump’s U.S. policies in some areas. Key areas of change could include:

1. Tax Cuts and Reduced Spending

A Conservative government is likely to prioritize tax reductions and fiscal restraint, which could attract business investment but might lead to cuts in social programs. This could disproportionately affect low- and middle-income Canadians, including many immigrant families.

2. Changes to Immigration Priorities

Conservatives may focus on economic-class immigration while tightening rules on family reunification and refugee programs. This would favour skilled workers but make it harder for some immigrants to bring family members to Canada.

3. Boosting the Energy Sector

A Conservative government may align closely with Trump’s pro-oil agenda, potentially expanding Canada’s oil and gas exports. While this could benefit provinces like Alberta, it could exacerbate conflicts over environmental policies and Indigenous land rights.

The Impact on Canadians

1. For Everyday Canadians: Mixed Consequences

Tax cuts may provide more disposable income, but reduced government funding for public services like healthcare and education could shift more costs onto individuals, increasing financial burdens for many households.

2. For Immigrants: Dual Challenges

Tighter immigration policies might limit access for low-skilled workers and refugees, while raising the bar for economic immigrants through stricter requirements for education, language, and work experience. Immigrants already in Canada could see more competition in the job market but may also benefit from increased demand for skilled professionals.

3. For Canadian Society: Multiculturalism at Risk

A collective rightward shift in North America could challenge Canada’s commitment to multiculturalism, potentially fostering a less inclusive environment for immigrant communities and increasing cultural integration pressures.

Trump’s return to the U.S. presidency has already begun reshaping North America’s political and economic dynamics. If Canada’s Conservatives regain power, the region’s rightward trajectory will likely accelerate, bringing significant policy changes and societal shifts.

While these changes could create opportunities for economic growth and skilled immigrants, they also pose risks to social services, inclusiveness, and multicultural policies. For Canadians, particularly immigrants, staying informed, building community networks, and adapting to the evolving landscape will be essential to navigating this new era in North American politics.