In the wake of Donald Trump's 2024 election victory, many US expats are taking a hard look at their American citizenship—and deciding that renunciation may be their best option. According to a recent CBC News article, US consulates in Canada have seen a surge in inquiries from American expats looking to cut ties with the US. As noted in the article by our Director of US Tax, Alexander Marino, our firm is "seeing a bump due to the election results."
"For a lot of people, the election results are a bit of the straw that broke the camel's back." – Alexander Marino.
Frustration with the US political landscape has long been a factor in renunciations, but this latest wave suggests something deeper: a growing indignation over policies that not only affect life abroad but also actively harm the countries where expats reside.
The Trump administration's economic policies have spurred many dual citizens to reconsider their US citizenship. Donald Trump has doubled down on tariffs that directly impact the Canadian economy, and many expats resent that their US tax dollars fund a government that undermines their livelihoods at home.
Trump's increasingly hostile rhetoric toward Canada has also been a major point of contention. Whether it's dismissing trade relationships, pressuring Canadian businesses, or making inflammatory statements about the country, many dual citizens feel personally targeted.
We hear from many clients who are tired of being linked to the US under this administration. It's not just about the taxes or bureaucracy—it's about not wanting to be associated with the kind of politics the US represents right now.
For high-net-worth US expats, the looming reduction of the lifetime gift and estate tax exemption is also a pressing concern. Currently set at $13.99 million, this exemption is slated to drop to around $8 million in 2026 unless Congress intervenes—dramatically increasing US estate tax obligations for those with substantial assets. With Trump's administration favouring tax cuts for corporations over relief for individuals, many expats fear their estates will be hit harder than ever.
People are frustrated that they're paying into a system that works against their interests. They want out, and they want out now.
Renouncing Your US Citizenship THE RIGHT WAY
Renouncing your US citizenship or terminating your Green Card can be a complex and intimidating process – but you can avoid most of the potential drawbacks if you do it the right way. Proper renunciation can relieve you of onerous US tax obligations without requiring you to cut ties with the US entirely. Our team of experienced US tax attorneys and accountants helps between 800 and 1,200 people terminate their US status correctly every year.
The Exit Interview at the US consulate is a crucial step in the process, where you formally state your intention to renounce your citizenship. Many US expats worry about how the process will unfold under Trump, wondering, "Will there be retaliation, or is the process going to run as smoothly?" Thorough preparation is essential for a stress-free experience.
Moodys Tax Law is only about tax. It is not an add-on service, it is our singular focus. Our Canadian and US lawyers and Chartered Accountants work together to develop effective tax strategies that get results, for individuals and corporate clients with interests in Canada, the US or both. Our strengths lie in Canadian and US cross-border tax advisory services, estateplanning, and tax litigation/dispute resolution. We identify areas of risk and opportunity, and create plans that yield the right balance of protection, optimization and compliance for each of our clients' special circumstances.
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