By Ray Rivers
September 2, 2025
BURLINGTON, ON
Mark Carney never actually promised that he’d get rid of Trump’s tariffs. He said he’d deal with Trump and build Canada-strong but he knew that Trump was determined to apply tariffs on all of America’s trading partners. And Carney has conceded that some level of American tariffs on Canadian goods and services is inevitable.
He also knows that coping with this massive trade disruption we’re experiencing is going to be challenging. And it may be even worse next year. The USMCA agreement which still allows Canada to export most goods tariff-free expires next year. And given the US president’s feelings about tariff-free trade, the chances of a renewal are slim.
The choice of re-building our economy or becoming the 51st state.
So it is up to us to reinvent the Canadian economy, turning the clock back to a time when Canada was largely self sufficient in how we earned our livelihood. Those would be the days we made things like white goods, guitars and pianos, textiles and leather clothing. Those were the days before we allowed Brian Mulroney and subsequent political leaders to sell us out to the Americans. And now we face the inevitable – the choice of re-building our economy or become the 51st state. There was a reason why Trump used that phrase.
If tariffs are good for big economies, like the USA, they are even more important for the sustainability and perseverance of their smaller neighbours, like Canada. In fact, as Mr. Trump will find out eventually, big economies benefit even more from greater access to international markets. But that door is rapidly closing for him as he alienates his allies and friends,
Realigning the Canadian economy is going to take time. We will be a stronger, more independent nation.
Carney’s decision to take down most of the retaliatory tariffs is a recognition that, with a few exceptions, they dampen economic activity in the short run. It’ll take time for the result of policies geared towards import substitution to kick in. In the meantime Carney’s job is to stick-handle the economy and the tenuous relationship he has with Mr. Trump.
Leader of the opposition, Mr. Poilievre, has voiced his concern that it looks like retreat. And our PM has made significant concessions to American negotiators in the hope of getting a deal in Canada’s favour. His plan is to cooperate rather than resist. But the puck is still on the ice. Elbows up.
Ray Rivers, a Gazette Contributing Editor, writes regularly applying his more than 25 years as a federal bureaucrat to his thinking. Rivers was once a candidate for provincial office in Burlington. He was the founder of the Burlington citizen committee on sustainability at a time when climate warming was a hotly debated subject. Ray has a post graduate degree in economics that he earned at the University of Ottawa. Tweet @rayzrivers
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Jim & Michael pretty well nail it.
However, Carney with his retreaded cabinet & advisors have certainly built expectations among Canadians that tariffs would be either eliminated or considerably reduced in the short term.
A result is nowhere in sight either with the USA or China. The minimus hit this week will be insufferable for many a small business.
The Liberal machine will soon no longer be able to blame with the orange man or climate change for all of the country’s woes.
Perhaps this is why the polling direction appears to be changing.
Carney’s approach will be decades in the making if it works at all and will not address any of the country’s immediate challenges.
I can’t wait for the shoe to drop with the October budget. Sure, Mark we are going to quadruple defence spending by 2030. He will be shifting lines on the ledger.
Pretty sure the provincial infighting about selections of projects of “national interest” will provide hours of entertainment.
Ford Carney’s right-hand man again plays the village idiot with his emptying of Crown Royal. If only Ontario had an option.
Actually Carney promised Canadians to “beat Trump”. How is that going so far?
https://economictimes.indiatimes.com/news/international/global-trends/canada-elections-a-look-at-mark-carneys-promises-amid-anti-trump-wave-and-trade-tensions-with-us/articleshow/120696674.cms
So elbows are DOWN, retaliatory tariffs are ZERO, US tariffs on Canada are UP, US GDP is UP, Canadian GDP is DOWN (actually negative last quarter and heading to recession) . Crime UP, Unemployment UP, temporary foreign workers WAY UP, government spending WAY UP (+8%). Latest Abacas Poll showing this government DOWN.
Please tell us from your bag usual of tricks how to “beat Trump” doing something that will actually work, and tell us how it will work.
The numbers you report are of interest, but not of any use to the goal.
People must forget standard trade theory until Trump is gone. He is a self imposed Wild Card.
He really is a Dictator, doing whatever he wants, and telling his lackies to just find some justifications for his propaganda mill – it doesn’t matter if it is total lies, he will do it. This is not something we can afford to just criticize Carney for with just more PPCon hot air – he has nothing better or even equal to Carney, so he can’t just fix it either.
Don’t forget, Trump is conducting an economic World war using Tariffs – like I really mean War equivalent, to dominate, intimidate, damage, loot, I am at a loss for adequate words as these are change of era times.
Again, forget any of your ideas about sensible, rationale economic trade rationale from the past. He is not our friend, and he really has serious Tariffs on our key industries of Steel, Autos, Aluminum, Smelting, and just generally, and he is raking in the dough.
He does want Canada and he will not go away in that respect. It is correct politics to be fearful and hurt him back, as he is determined to hurt us.
Japan & Germany were in ruins after the war. Major German cities had been reduced to rubble, and Japan had Hiroshima and Nagasaki. Thankfully WE are not starting from there! Elbows on the ready.
Trade between companies is always good providing there is competition with few oligopolies. Trade becomes skewed when governments get involved putting their big fat thumbs on the scale looking for advantage for their constituents. Trump’s thumbs are huge. The tariffs will hurt all economies, just some more than others. We must build on our strengths, raw materials, energy and food. While we may be able to compete in some manufacturing areas, for the most part the Canadian market is not large enough to compete world wide
Rebuilding any economy would take decades with little guarantee of success.What examples do we have of democratic countries rebuilding an economy.
Germany and Japan after WW2?That took decades.