By Ron Foxcroft
April 3rd, 2025
BURLINGTON, ON
For entrepreneurs and all Canadian business we should be planning for many economic challenges in 2025.
The President of the United States changes his agenda, more often than he changes his underwear.
WE are going to plan for the worst, and strategically have options 1, 2, and 3 moving forward.
Slowly the Republicans will challenge Trump’s motives, but currently they will not challenge him and face his wrath.
They are more concerned about their self interest.
Slowly, a few members of his cult will be hurt and turn on him.
Slowly, Corporate USA will begin to get hurt by his motives, and turn on him.
This entire process will take many months, therefore, Corporate Canada is facing difficult economic challenges throughout 2025.
I am delighted how Canadians proudly have become more united than ever in our history.
United as Canadians we are strong, facing the USA President who is a Bully but when confronted will be a Coward.
Ron Foxcroft is the president of Foxcroft International
What, Wayne said. Yup.
I agree that we do need to change, in many ways, because we really are trade dependent on the US, and dangerously vulnerable to the naturally open economy we have relative because we have such a small economy compared to them.
We have become dependant on the mostly free trade economy the US allowed itself to become from 1973, till now, with transnationals moving production offshore, and exporting products back to the US tariff free.
Nixon opened up trade with China, and again, with no tariffs, trans-nationals and agreements, moved there for cheap costs, to then export back to the US, and wherever.
It also stimulated, over the same decades, stimulated many domestic companies to become trans nationals, and move production from the US to other places. For us, this was Canada, US and Mexico. Trade agreements were struck, and so a steady deterioration of US industry, for decades, was allowed by the successive US executive governments.
Of course Trump blames it all on whoever exported things to them without tariffs on whatever the US bought from them. This policy, over many decades, undercut the US industrial base, while it allowed the exports to receive the US no tariff.
In this progressive economic deterioration, including in real wages, loss of manufacturing, steel making, industrial capacity, and general real earnings loss, it is argued in economic literature, that the damage was self imposed. The US wanted and bought all the imports shipped that made up the eventual ever growing trade deficit – it really is their own fault, and Trump is his usual liar playing the victim.
The US is such a large, consumer economy, with growing large imports, and trade deficits, and over 1973 -1980s, and ever since, until Trump, a new political attitude emerged. This slowly led to free trade, liberalized trade agreements, and transnational investment relocation. Starting back then, the US economy evolved in trade with newly cheaper excessive consumer everything, and from many newly industrializing countries.
Thinking about it, all the so called oligarchs, and billionaires everywhere made their fortunes, mostly, in this period that sowed the seeds of what it is we see.
I must note some caveats. This time is an entirely new context, so the past trade dynamics that brought us to here is not guaranteed to behave just like the past. Also in this point, it must be remembered, that this Trump major action always takes a long time, and it’s an irreversible process – you don’t get to just back up to where you were in 1973, in spite of the Trump promise of doing everything on Day One..
Even Trump is admitting it could be years, in fact, history says it will in fact be many years, for his so-called “permanent” tariffs to even suggest it might work, and then, there is no guarantee it will succeed at all.
My own opinion is that historically, the best strategy for dealing with a trade war, such as reciprocal tariffs, is a negotiation strategy called “tit for tat”. Tit for Tat is already extensively utilized in international relations to encourage cooperation and non-violence in designing solutions that satisfy associated parties. Trump talks a lot about this deal-making. Everybody gets something they want.
This article makes more sense than the political dystopian musings (its over) and theatrics coming from Ottawa these days. A real businessman has spoken, heed his words.
Disagree !! In my opinion:
-Trump has strong support within the Republican Party because his policies benefited the U.S. economy, lowered taxes, and reduced government spending and regulations.
His leadership remains dominant, and even critics within the GOP align with his economic vision. The impact on the USA is massive.
-Corporate Tax Cuts – Trump reduced the corporate tax rate from 35% to 21%, making the U.S. more attractive for businesses and investment.
-Deregulation – His administration cut government regulations, reducing costs for businesses and boosting industries like energy and manufacturing.
-Energy Independence – he will expand domestic oil and gas production, resulting in lower energy costs and reduce reliance on foreign oil.
His policies encourage companies to reinvest in the U.S., leading to job creation in key sectors like energy, tech, and manufacturing.
-Border security – it”s now under control.
Since Trump’s policies are designed to benefit America first, Canada should accept that and be proactive.
Perhaps Canada should lower corporate taxes and reduce regulatory burdens to make Canada an attractive place for business investment.
Perhaps Canada should focus on the energy sector and pipeline projects and align them with Trump’s pro-oil policies, that would benefit both countries.
Perhaps Canada should work with Trump’s administration rather than against it by negotiating trade deals that highlight mutual benefits and align with areas of opportunity—such as supplying raw materials, energy, and skilled labor to U.S. industries.
With regard to the “bully” / “coward” discussion, for sure Trump’s approach to leadership is aggressive, but that does not make him either of these.
Trump is not a “bully”. Rather than hurting Canada, Trump’s policies—particularly those that prioritize economic growth, energy development, and fair trade—could create opportunities for Canadian businesses. While his rhetoric is divisive, his actual policies are often pragmatic and focused on economic strength.
Trump is not a “coward”. He has consistently taken bold and controversial actions, from renegotiating trade deals to confronting global adversaries, often facing intense opposition without backing down.
Canada should stop whining about Trump and find a Leader who will start adapting to Trump’s policies in a way that strengthens our economy and benefits Canadians.
In the Hamilton Spectator this morning Ron Foxcroft told of an incident that just happened when trying to get a truckload of whistles across the border. The truck was refused entry into the U.S. because the whistle has a small metal piece in it and their lanyards had a metal clip on them.
The truck had to return and the company had to determine how much of the metal pieces were to be tariffed. The truck was allowed to enter into the U.S. the following day because they had the appropriate paperwork.
This is more than insane.