"This strategy starts by withdrawing from the Trans-Pacific Partnership and making certain that any new trade deals are in the interests of American workers. President Trump is committed to renegotiating NAFTA. If our partners refuse a renegotiation that gives American workers a fair deal, then the President will give notice of the United States’ intent to withdraw from NAFTA."
"The plan starts with pro-growth tax reform to help American workers and businesses keep more of their hard-earned dollars. The President’s plan will lower rates for Americans in every tax bracket, simplify the tax code, and reduce the U.S. corporate tax rate, which is one of the highest in the world. Fixing a tax code that is outdated, overly complex, and too onerous will unleash America’s economy, creating millions of new jobs and boosting economic growth."
I agree with simplifying taxes in principle, and I think Canada should do the same. Just imagine the complications when calculating the taxes on a voluntary schedule change to a Canadian domestic flight invoving a change of province. Suddenly we need to recalculate the different GST, HST, QST, and other amounts just because a flight is no longer leaving from the same province for example. Sometimes it's about calculating a dollar here and a dollar there.
Some of that is automated, but much of it isn't and must be calculated manually. That's a lot of overhead cost in working hours that must be passed on to the client.
The travel industry is just one example of complicated tax calculations. Streamlining and standardizing taxes definitely would make sense especially in Canada.
However, I get the impression Trump is thinking of shifting that to tariffs. it's no longer campaign rhetoric. It's now on the official White House Website. Of course it can still be empty rhetoric until it becomes law, but at this stage, putting on the website indicates a very probable intent.
How does Canada react to a protectionist renegotiation of NAFTA?
I'd be willing to scrap Canadian Content requirements in Canada's media protectionism and scrap the supply-management system. But if that does not suffice for Trump, then Canada absolutely will need to find trading partners abroad to compensate, at least in part, for any loss of trade with the US. The Northern hemisphere would be a logical first step in that direction I suppose along with trade with Latin America.