Trending Topic: Big Border Tax

Trump, President-elect, has made border tax* a trending topic. During the election campaign, Trump pledged to force Canada and Mexico to renegotiate or scrap the North American Free Trade Agreement** as a means of protecting and creating U.S. jobs. The threat raised concerns that U.S. protectionist's*** measures will play an important role in helping Trump re-haul trade policies once he assumes office.

As of today, the federal department of Innovation, Science and Economic Development declined to comment on Trump's "big border tax" threat. The automotive industry is keeping a close eye on developments.

What is your opinion on big border tax? Let's start a discussion. Comment below.

*Border Tax

A tax on home produced goods and imports, from which exports are exempt. Border tax adjustments are intended to encourage exports while not making imports excessively competitive against domestic goods. This may be seen as a barrier to trade.

**NAFTA

In 1994, the North American Free Trade Agreement (NAFTA) came into effect, creating one of the largest free trade zones and laying the foundations for strong economic growth and rising prosperity for U.S., Canada and Mexico. Since then, NAFTA has demonstrated how free trade increases wealth and competitiveness, delivering benefits to families, farmers, workers, manufacturers and consumers.

*** Protectionist

A supporter of government economic protection for domestic procedures through restrictions on foreign competitors.