U.S. border-tax plan would cut one percentage point from Canadian growth: study
Posted Feb 14, 2017 12:32:31 PM.
This article is more than 5 years old.
OTTAWA – A new report says a proposed U.S. border-adjustment tax that has stirred up fears in Corporate Canada would inflict considerable damage on both economies.
The analysis by the C.D. Howe Institute think tank estimates the U.S. policy change would shave nearly a full percentage point from Canada’s economic growth.
The study’s authors say the plan would reduce bilateral trade in both directions and predict it would cut nearly 1.3 percentage points from U.S. economic growth.
The report’s release comes a day after Prime Minister Justin Trudeau met President Donald Trump and top House lawmaker Paul Ryan, who has promoted the border-tax measure.
It’s unclear whether Trudeau was able to get some clarity from Ryan on the future of the border tax, which has Canadian firms deeply concerned.
When asked whether Trudeau learned more about the border-tax proposal, a spokeswoman in his office pointed to a statement that only said the prime minister discussed trade during his meeting with Ryan.
