One year after former US President Donald Trump’s sovereignty threats and tariffs, Canadians are continuing to show an unusual swell of patriotism, which has evolved into a new social and economic order. This shift is evident in the increased support for domestic businesses and products, with companies like Canadian National Railway and Toronto-Dominion Bank ($TD) experiencing growth in demand for their services.
The tensions between the US and Canada began in 2018, when Trump imposed tariffs on Canadian steel and aluminum imports, citing national security concerns. In response, Canada retaliated with its own tariffs on US goods, leading to a trade war between the two nations. The situation escalated further when Trump made comments about Canada’s sovereignty, which were widely criticized by Canadian leaders and citizens. As a result, Canadians began to rally around their country and its products, with many choosing to “buy Canadian” and support domestic businesses.
The effects of this shift can be seen in the stock market, where companies like $TD and Royal Bank of Canada ($RY) have experienced significant growth. The Canadian dollar has also strengthened against the US dollar, making it more attractive for investors to put their money in Canadian businesses. Additionally, the trade war has led to an increase in demand for Canadian-made products, with companies like Bombardier ($BBD.B) seeing a surge in orders for their aircraft.
The trade war has also had an impact on the Canadian economy, with some industries experiencing significant growth while others have struggled. The following table highlights some key metrics:
| Industry | 2018 | 2019 | 2020 |
|---|---|---|---|
| Manufacturing | -2.1% | 1.5% | 3.2% |
| Agriculture | 2.5% | 1.2% | 4.1% |
| Services | 2.2% | 2.5% | 3.5% |
Looking forward, it is likely that the effects of the trade war and the resulting surge in Canadian patriotism will continue to shape the country’s economy and social landscape. As the US and Canada work to renegotiate their trade agreements, Canadian businesses and consumers will likely remain cautious, but also optimistic about the opportunities that this new era of protectionism may bring.
⚡ Why it matters: The ongoing trade tensions between the US and Canada have led to a significant shift in Canadian consumer behavior and economic landscape. The resulting surge in patriotism and support for domestic businesses has created new opportunities for Canadian companies and investors.
📊 By the numbers:
3.2% growth in Canadian manufacturing in 2020
4.1% growth in Canadian agriculture in 2020
$TD stock price has increased by 15% in the past year
🔗 Source: Statistics Canada*
