In this article, we will discuss How Trump’s ‘Big, Beautiful Bill’ Impacts Canada.
More than 800 pages long, the sweeping tax and spending bill signed into law by U.S. President Donald Trump on Friday could have significant consequences for Canada, particularly in the areas of energy and environmental policy.
Nicknamed the “One Big Beautiful Bill Act,” the legislation slashes billions in clean energy funding that had been aimed at strengthening America’s green infrastructure. Labor unions warn the move could lead to the loss of over a million construction jobs.
One major provision eliminates tax credits for electric vehicles, a shift that could set back the North American automotive industry’s progress toward electrification.
According to George Hoberg, a climate and energy policy professor at the University of British Columbia, these changes mark a sharp departure from the recent era of Canada–U.S. alignment on climate action. “This bill disrupts the fragile momentum we had toward more ambitious climate policy and a clean energy future,” he told Global News.
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Key Climate Incentives Rolled Back
Several clean energy tax credits introduced during former president Joe Biden’s administration under the Inflation Reduction Act are being phased out. These include incentives for residential solar panels, heat pumps, battery storage, and efficiency upgrades like improved insulation, windows, and HVAC systems.
Of greater concern, however, are the new restrictions placed on large-scale wind and solar developments. While Biden’s law allowed such projects to qualify for credits even years into the future, Trump’s bill shortens the timeline significantly. Projects must begin construction within a year of the bill becoming law and be fully operational by the end of 2027 to receive full benefits.
According to Atlas Public Policy, around 28 gigawatts’ worth of wind and solar projects planned for post-2028 operation now risk cancellation, as they will no longer qualify for credits.
The North America’s Building Trades Unions — representing over three million workers across the U.S. and Canada — strongly criticized the bill. President Sean McGarvey called it “the biggest job-killing bill in U.S. history,” comparing its impact to cancelling more than 1,000 Keystone XL pipeline projects. The group estimates that up to 1.75 million construction jobs could be lost.
The Laborers’ International Union of North America, which includes half a million workers across North America, also condemned the bill, saying it would destroy thousands of high-quality jobs that were already in progress or had been promised.
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Implications for Canada
While President Trump’s policies are shifting further toward fossil fuels, Canada under Prime Minister Justin Trudeau continues to pursue a broader, “all-of-the-above” energy strategy that includes oil, gas, renewables, and emerging technologies like carbon capture.
Energy analyst Calnan noted that although both countries are aiming to become energy superpowers, the Trudeau government is positioning itself closer to the political center, while Trump’s approach veers more heavily toward traditional energy.
In Canada, discussions are underway about accelerating “nation-building projects” under new federal legislation. These include both traditional fossil fuel ventures and clean energy initiatives. Alberta Premier Danielle Smith, for example, has proposed a “grand bargain” — pairing a $16.5-billion carbon capture project with a new crude oil pipeline to the West Coast.
With the U.S. scaling back green incentives, experts believe Canada may now be better positioned to attract clean-tech investment. UBC’s Hoberg suggested that Canada’s abundant hydropower resources could appeal to artificial intelligence companies seeking low-carbon energy for their data centers.
In short, Trump’s sweeping rollback of green policies may isolate the U.S. on climate efforts — while opening the door for Canada to step in as a cleaner, more stable alternative for energy investment and innovation.
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