A decade of economic complacency and poor leadership have left Canada vulnerable to Trump’s tariff threats
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Justin Trudeau has successfully spread division from coast to coast on multiple issues throughout his nine years as prime minister. But his latest venture has been an attempt to unite Canadians under one theme: hate Donald Trump.
It’s a classic feint, directing people to look “over there” so they don’t see the problems staring them in the face.
Despite Trudeau’s attempts to cloak himself in the Canadian flag and rally the country around disdain for Trump and many things American, it is thin gruel indeed, for it is Trudeau alone, and those who have kept him in power—specifically Jagmeet Singh and the NDP—who have placed Canada in a position of unprecedented economic weakness.
Having a drama teacher loathed from coast to coast trying to negotiate anything with the author of The Art of the Deal is a mismatch of epic proportions. Trump is Goliath. Trudeau would hope to be David, except he has no stones.
 Trudeau, not Trump, is to blame for the economic mess Canada faces. |
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Trump must be licking his chops as he negotiates publicly with Canadian politicians who are notoriously inept at dealing with businesspeople and incapable of matching wits or strategy with a hardened capitalist. But the federal Liberals aren’t just contending with Trump—they’re also bargaining with Canadian voters ahead of this year’s election. As an unpopular government likely nearing the end of its tenure, the Liberals may not be prioritizing what is best for Canada. Instead, they are more inclined to strike deals based on what they believe will appeal to voters in the short term—decisions that may not serve the country’s long-term interests.
Canada’s perilous position is entirely of its own making. Its economic malaise and unpreparedness for a powerful American president’s threat of tariffs have shocked the system and started emergency conversations that should have taken place over the last decade—namely, opening other markets for natural resources and eliminating self-sabotaging interprovincial trade barriers.
Trudeau’s gravest economic injustice has been his attempt to fight climate change by increasing the price of gas while slowing resource extraction and industrial growth to a crawl, all in pursuit of his green ideology with religious fervour.
Germany and Japan both came, cap in hand, begging for Canadian natural gas. Trudeau, claiming there was “no business case” for it, turned them both away. Trump recently secured a major deal for the U.S. to supply Japan with natural gas. That contract could have—and should have—been ours.
Had Canada properly managed its resources and allowed pipelines to get oil and natural gas to European and Asian markets, it could shrug its collective shoulders if the U.S. decided to impose tariffs. Canada could say: “Go ahead. We have other markets that will purchase resources at prices that make sense for us, without a discount.”
Love him or hate him, Trump has done Canada a favour by shocking the nation awake to its dire economic circumstances and the perils of serving just one close customer while failing to pursue others.
Competition is the hallmark of capitalism, and it’s what forces businesses—and politicians—to pay attention. If Trump’s demolition of federal government largesse is successful, Canada will be forced to follow suit to some degree.
Trump’s plan to jump-start the U.S. economy appears to rest on three pillars. First, identifying wasteful government spending and eliminating it through Elon Musk’s Department of Government Efficiency (DOGE). Governments don’t create wealth; they spend what they collect through taxation and fees. If Musk is successful in his pursuit, the result will be a leaner, more efficient system with fewer tax dollars siphoned away.
Second, Trump wants to impose tariffs on foreign goods unless companies set up shop in the U.S., creating domestic jobs. This strategy, borrowed from 25th U.S. president William McKinley, forces companies to choose between paying tariffs or investing in American manufacturing. Critics argue this will cause inflation and increase costs, but Trump believes Americans will have more disposable income thanks to higher-paying jobs, offsetting any price increases.
Third, Trump has hinted at significant income tax reductions. Allowing Americans to keep more of what they earn would stimulate economic growth. With a leaner government requiring less revenue, people wouldn’t have to hand over half their income for programs they don’t want or need. Unlike Canadians, Americans typically aren’t savers, meaning that extra cash would flood into the market and stimulate the private sector.
This strategy should sound familiar. When Gordon Campbell became premier of B.C. in 2001 after 10 years of NDP rule and economic stagnation, his shocking, immediate 25 per cent cut in personal income tax jolted the marketplace and led to a decade of economic growth and prosperity. Canada has seen this strategy work before.
Trump’s tariff threats have exposed Canada’s economic weakness. If his plans work, he could be one of the best things to ever happen to this country—because we will be forced to follow suit to stay competitive, or risk falling behind.
Mark MacDonald writes for the Business Examiner News Group in British Columbia.
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