The Ripple Effects of Trump’s Second Term on Canada
In the wake of US President Donald Trump’s second inauguration, Canada, America’s closest neighbor, has witnessed significant shifts in its political landscape, trade practices, and societal attitudes. As a nation deeply intertwined with the US, the impacts have reverberated across various sectors, affecting everything from consumer behavior to international relations.
A Shift in Canadian Perception of the US
Historically, Canadians have maintained a favorable view of their southern neighbor. However, the past year has seen a troubling decline in this sentiment. Recent polling data from the Pew Research Center indicates that a staggering 64% of Canadians now harbor negative views toward the US—the highest level of discontent recorded in over two decades. This marks a noteworthy shift from previous years when a majority held a more favorable stance.
Further insights reveal that about 77% of Canadians lack confidence in Trump as a leader. Many respondents described him as "arrogant," with a significant portion deeming his leadership "dangerous." A separate Angus Reid poll highlighted a growing wariness among Canadians, with nearly half viewing the US as an "enemy or potential threat," even surpassing concerns about countries like India and China.
Decline in Cross-Border Travel
For years, the US has been a favored travel destination for Canadians, offering a blend of shopping, vacations, and cultural experiences. However, recent statistics reveal a decline of more than 25% in trips from Canada to the US over the past year. This downturn has not gone unnoticed in the American tourism industry, which now anticipates a significant loss in revenue.
In contrast, domestic tourism in Canada has surged, with the national sector reporting record revenues from May to August. Canadians are increasingly opting for local vacations, with many directing their travel funds toward exploring their own vast and diverse landscapes. Others have turned their attention to Mexico, where visitation from Canada has increased by 12%.
A Call for Local Products
The impact of Trump’s tariffs has prompted many Canadians to rethink their shopping habits, leading to a noticeable shift towards local products. This trend is particularly evident in the liquor industry, where many provinces have removed American alcohol from their shelves in response to US tariffs. Statistics indicate that imports of US spirits plummeted by 9% during the last quarter of 2025 compared to the same period the year prior.
Furthermore, Canadian consumers are increasingly purchasing Mexican products, especially vehicles, signaling a shift in allegiance from American goods to alternatives from south of the border. This movement is echoed in federal initiatives encouraging support for homegrown businesses, particularly in sectors heavily affected by American trade policies.
Political Turbulence and a Shifting Landscape
Before the onset of Trump’s second term, the governing Liberal Party in Canada appeared to be on shaky ground, facing potential collapse in an upcoming federal election. Polls indicated a strong lead for the opposition Conservatives. However, the political atmosphere shifted dramatically when former Prime Minister Justin Trudeau resigned, paving the way for Mark Carney—previously a central banker—to step into leadership.
Carney’s campaign focused heavily on addressing the economic uncertainties tied to Trump’s administration, resonating with anxious voters concerned about Canada’s sovereignty. In the late April election, Carney’s leadership reinvigorated Liberal support, leading to a narrow return to power.
Establishing New Alliances
In the face of an unpredictable Canadian-US relationship, the government has sought to strengthen ties with other nations. This strategic pivot was exemplified by Carney’s recent visit to China, aimed at reducing tariffs and enhancing market access—a notable turn from previous rhetoric labeling China as a security threat.
Moreover, plans for trade missions to India and visits to Gulf nations underscore Canada’s proactive approach to diversify its economic partnerships. These diplomatic efforts highlight a broader strategy to counterbalance the complications arising from US-Canada relations.
Canada’s journey through the twists and turns of Trump’s second term presents a complex picture, filled with evolving sentiments, altered consumer behaviors, and a quest for new international relationships. As the landscape continues to change, the impacts of these developments will shape the country’s future for years to come.
