Mary Scianna, EditorClick image to enlargeDonald Trump is now the 45th president of the United States.

Canada must now grapple with the uncertainty of his presidential campaign promises. I say "uncertainty" because depending on whom you speak with, he will either be good for the Canadian economy or he will hinder growth.

Canadian proponents of Trump say if he truly can turn the US economy around–as some say he already appears to be doing with recent announcements by manufacturers to remain and to expand in the US–a stronger US economy will benefit the Canadian economy. Indeed, Matthew Barasch, a Canadian equity strategist with RBC Capital Markets, noted in a report in September 2016 that Trump's proposals to lower tax rates, increase US infrastructure spending and approve pipeline projects would have a "fairly meaningful" impact on Canada.

"Our view is that contrary to what some may believe, Mr. Trump's policies, if adopted (in part or in full), would not be negative for Canada and Canadian stocks."

Canadian opponents of Trump say his promises to reduce US corporate taxes, slap high tariffs on imports and renegotiate free trade agreements, could have a disastrous economic effect on our economy. Especially because about 75 per cent of Canadian exports are still destined for the US, despite Canadian government efforts to diversify with free trade agreements with other countries and regions around the world. One specific issue related to US protectionist measures is a border adjustment tax, highlighted in a January 11, 2017 Globe and Mail story in which writer Rachelle Younglai notes that "a border adjustment tax would penalize all exporters to the United States. But the impact on the country's closest trading partners, Canada and Mexico, would be the most severe."

She notes that a tax on Canadian exports to the US would make Canadian products more expensive and would force US businesses to look elsewhere for less expensive products, ultimately slowing trade between Canada and the US. The only possible upside is that the tax would cause the US dollar to rise and make US exports more expensive and Canada's goods cheaper to import.

The Government of Canada recognizes that it will have to have its best negotiating hats on in the coming months when it enters into potential trade discussions with the new US president and his administration. Indeed, Prime Minister Justin Trudeau's cabinet shuffle in January was, in part, a chance to reposition the government to do just that. And Trudeau's first meeting with Trump in February appeared to be a success with the two leaders reaffirming the strong bonds between Canada and the US.

Despite this, Canada will have to continue to stand its ground on future negotiations with the US and ensure that Trump's promise to "make America great again" will also help to bolster the Canadian economy. SMT

New plasma cutting tables

The TorchMate 4400 | 4800 CNC plasma cutting systems by Lincoln Electric are designed for the growing fabrication shop. Its design, components, and construction were all single source engineered to deliver exceptional repeatability and performance.

Machinery ROI

by Jeff Reinert

Justifying high technology in the machine shop

When chatter is a good thing

by Tim Wilson

There is room for manufacturers to up their marketing game

Marketing a shop's capabilities to the right audience can make a real difference to the bottom line, but unfortunately many manufacturing businesses either don't know how to approach marketing, or consider it a low priority. That's too bad because there are some low-cost approaches that can bring impressive results. These include social media, which is poorly utilized in the sector.

Live tool head upkeep

by Nicholas Bergmann

Perform a five-point tool head preventive maintenance inspection

Skills schooling

by Tim Wilson

Technical schools rising to the challenge of skills training for the future

Manufacturing: Enough is Enough

The world is tired of the endless negative news about manufacturing and despite the ongoing economic upheaval in Europe, the global economy is saying "enough is enough and it’s time to move on.”

Mechanical engineering latest technology – amazing inventions

Siemens Energy and LMT have a couple of new mechanical engineering ideas. Have a look.

Revisiting Free Trade

US President Donald Trump says he wants to make America great again and part of his plan is to rip up free trade agreements and bring manufacturing back into the US.

Feeding Frenzy

by Kip Hanson

High speed, high feed, high efficiency machining? Whatever you call it, success requires a balanced approach

Ultrafast Lasers Offer Great Promise as a Unique Manufacturing Tool

By Geoff Shannon, Amada-Miyachi America

Ultrafast or ultra-short pulse lasers offer unique material processing possibilities, because the laser’s pulse duration is less than the target material’s conduction time. Essentially this means that cold machining of parts is possible–with material being removed by sublimation.

Tech Tips: Tips for jaw boring

by Stefan Gruber

Avoid unsafe clamping issues

Live tooling

by Preben Hansen

Consider your options if working with driven tools

Is the internet of things working for manufacturers?

I met a manufacturer recently who didn’t have a web site for his company, nor was he set up on any social media sites to promote his business.

3D Inspection: Remote Control

by Noelle Stapinsky

Moving automated 3D inspection technology to the shop floor boosts throughput with faster quality control

Stay In Touch

twitter facebook linkedIn