November 7, 2024
Municipal Information Network

US Election Changes the Game
By Gord Hume

November 7, 2024

Municipalities across Canada, as well as the federal and each provincial and territorial government, are assessing the results of the US federal election.

The final result in the US has reinstated Donald Trump to the White House, given control of the Senate to the Republicans, and may continue the majority in the Congress with the Republican party. If that occurs, it will give President-Elect Trump unfettered authority in his ability to govern.

Canada's Prime Minister, Minister of Global Affairs, and various economic ministers have been assuring Canadians that the federal government has been planning and working on such a scenario for months. Let us hope so. Canada's economic relationship with the USA is crucial to this country.

It takes time to build good relationships. Mr. Trump will appoint a new Cabinet and make thousands of appointments in the US government. A president has tremendous authority to change civil service appointments, much more so than in Canada. It is one of the perks of power, and it will be used, perhaps ruthlessly, by the winners.

On a large economic scale, our concerns will be focused on three main topics: 1. Tariffs. 2. A renegotiated NAFTA/USMCA agreement. 3. Border security.

All these economic issues directly impact Canada's 4,000 local governments. It is difficult for any but the largest cities to spend much time and treasure lobbying in the US, but certainly FCM and provincial bodies will invest effort to support government strategies.

Provincial governments will be deeply involved in discussions, and municipalities may be able to influence those negotiating positions.

It will take time to develop new relationships with US officials. That will be a difficult transition for Canada. Most countries around the world will be seeking their own influence.

While our traditional relationship with the US and our proximity to their country are advantages, there should be no illusions that those are going to give us an easier path forward. Our lack of sufficient NATO spending is an irritant for the US. So are some of our traditional market protection policies, such as dairy.

Expect hardball to be played. The US is certainly more concerned about trade with Mexico and the southern border than Canada and the northern border. It is a worrying thought, however, that if they impose rigid cross-border security the impact may also be felt along the 49th. The economic implications in such a scenario are quite horrific.

Canada needs to become more assertive in our national ambitions. We need to raise productivity. We need to increase innovation. We need to build more houses. We need to work smarter. We need to regain our international swagger—for our accomplishments.

It will be an uncertain few months ahead as the new US administration is sworn in and new officials are appointed.

Municipalities wait anxiously, willing to help.

For more information

Municipal Information Network
475, Montée Masson #102
Mascouche Quebec
Canada J7K 2L6
www.municipalinfonet.com


Gord Hume
gordhume@municipalinfonet.com
http://www.gordhume.com
519-657-7755


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