Trump will probably deregulate resource-extraction policies and lower taxes. With that, any carbon tax increase in Canada will need to be compensated for by a reduction in income taxes, value added taxes, and business taxes for example if Canada intends to remain competitive. That way, while the US will have the advantage in resource-exploitation due to its low carbon taxes, Canada could gain an edge in value-added manufacturing exports through lower business taxes, income taxes, and value-added taxes for example.
With Trump in power, a carbon tax as a general tax increase is no longer an option.
With Trump in power, a carbon tax as a general tax increase is no longer an option.