Canada is an extremely business friendly country and must remain, with its dynamic federal tax rates of 15%, to which Trump is planning to come down to from its present tax rate of 35%. Canada fears losing its business from its own shore to the US below, as the US is expected to cut corporate tax rates to 15%, a very attractive scenario for businesses, even when they are not required to pay the carbon tax, which Canada is thinking to impose. There are implications of tax deductions and that is to gain higher government revenues, and if the US government is not able to gain its expected revenue, they will amend their decision. Canada’s plan of imposing carbon tax on businesses may be hit, a succinct observation, but there may be different permutations, as US will also impose some kind of environment tax to expedite its revenues. Canada need not be critical of its policy of imposing carbon tax, and must go ahead with it, as it is for the environment and must not be subject to the US tax rates. Besides, moving an entire functioning business from one country to another is not a simple task, involving exit approvals and leaving a ready market share in Canada. The anticipation seen in shifting businesses will not fructify soon, as the US congress will put multiple checks before cutting taxes to a significant low of 15%. The shifting of business can be handled with matching or offering may other tax advantages to currently operating businesses.