By Dean Palmiere
Published Feb 07, 2025
Let’s cut the bullsh*t: if this is a trade war, we’ve been getting our asses handed to us for decades—long before Donald Trump even thought about slapping tariffs on our goods. The 30-day pause on his proposed 25% tariff on Canadian imports isn’t a victory; it’s a f*cking wake-up call. And if we don’t start paying attention, we’re going to keep losing.
Canada’s economy has been coasting on America’s coattails for far too long. We’ve been content to fill their trucks, pipelines, and shopping carts while patting ourselves on the back for being such good neighbors. But beneath the surface, our economy has been rotting. Productivity growth? A pathetic 0.8% annually over the past 20 years. Our dollar? It’s limping along at 69 cents against the greenback, down from parity just over a decade ago. GDP per capita? Falling off a cliff since 2013.
This isn’t just a bad year—it’s a f*cking trend. And it’s our fault.
We’ve Been Asleep at the Wheel
For decades, we’ve ignored the cracks in our economic foundation. Interprovincial trade barriers? Still a mess. Energy infrastructure? Stuck in regulatory hell. Defence spending? Don’t even get me started. We’ve been too busy clinging to the status quo to notice that the world is passing us by.
And now, Trump’s tariffs—or the threat of them—have ripped off the Band-Aid. If they go through, they’ll hit us hard. Lumber, auto parts, you name it—industries will suffer, jobs will be lost, and prices will skyrocket. But here’s the thing: this isn’t just about Trump. This is about us.
A Catalyst, Not a Catastrophe
Let’s be real: if we needed a kick in the pants to get our sh*t together, it’s better that it comes from an ally than an enemy. The U.S. might be a pain in the ass, but they’re not out to destroy us. They need us almost as much as we need them. Imagine if this wake-up call came from China or Russia—countries that wouldn’t think twice about exploiting our weaknesses.
So, instead of whining about Trump’s tariffs, let’s use this moment to fix what’s broken. Here’s where we start:
1. Smash Interprovincial Trade Barriers
It’s easier to ship goods from Ottawa to Buffalo than to British Columbia. That’s not just stupid—it’s embarrassing. Let’s tear down these ridiculous barriers and create a truly national market.
Advocate for policy changes. Join industry associations that lobby for freer trade within Canada. Build networks across provinces to create demand for your products and services.
2. Streamline Energy Projects
Our energy sector is stuck in regulatory purgatory. We need to cut the red tape and get projects moving—not just for the economy, but for our energy security.
Invest in renewable energy solutions. Partner with larger firms to innovate in energy efficiency and sustainability. Push for smarter, faster regulatory processes.
3. Invest in Defence and Innovation
Meeting our NATO commitments isn’t just about keeping Trump happy. It’s about building a defence industry that drives innovation and creates jobs.
Explore opportunities in defence contracting. Develop dual-use technologies that serve both civilian and military markets. Advocate for government incentives to boost R&D.
4. Diversify Our Trade Partners
Relying on the U.S. for 75% of our exports is a recipe for disaster. Let’s strengthen ties with Asia, Europe, and emerging markets so no single country can hold us over a barrel.
Explore export markets beyond the U.S. Leverage trade agreements like the CPTPP. Use digital platforms to reach global customers.
5. Upskill Our Workforce
A weak dollar is a symptom of a weak economy. We need to invest in education, training, and technology to build a workforce that can compete globally.
Offer training programs for employees. Partner with educational institutions to develop industry-relevant curricula. Invest in technology that enhances productivity.
This Isn’t a Trade War—It’s a Reality Check
Calling this a “trade war” might make us feel better, but it’s a cop-out. The real problem is us. We’ve been complacent, lazy, and too damn comfortable. Trump’s tariffs are just the latest reminder that the world doesn’t owe us a damn thing.
So, let’s stop crying foul and start fixing what’s broken. Let’s build an economy that stands on its own two feet—one driven by innovation, productivity, and a willingness to take risks. If these tariffs push us in that direction, then maybe—just maybe—we should be grateful.
The Complacency Trap
Canada’s economic complacency isn’t just a recent phenomenon—it’s a decades-long habit. As former Bank of Canada Governor Stephen Poloz once said, “We’ve been riding the wave of U.S. growth for so long that we’ve forgotten how to swim on our own.” And he’s not wrong. Our reliance on the U.S. market has made us lazy. We’ve ignored the need to innovate, diversify, and compete on a global scale.
Take the auto industry, for example. Canadian auto manufacturers have long depended on the U.S. market, but as global supply chains shift and electric vehicles dominate, we’re falling behind. “We’re stuck in the past,” says Flavio Volpe, president of the Automotive Parts Manufacturers’ Association. “If we don’t adapt, we’ll be left in the dust.”
The Tariff Tango
Trump’s tariffs are a blunt instrument, but they’ve exposed our vulnerabilities. As Canadian economist Jim Stanford puts it, “Tariffs are a symptom, not the disease. The disease is our own economic stagnation.”
And let’s not forget the human cost. Farmers in the Prairies, factory workers in Ontario, and lumber producers in British Columbia are all feeling the pinch. “This isn’t just about numbers on a spreadsheet,” says Mary Ng, Canada’s Minister of International Trade. “It’s about real people and real livelihoods.”
But not everyone sees it as a disaster. Some, like Conservative Leader Pierre Poilievre, argue that Trump’s tariffs could be a blessing in disguise. “This is our chance to break free from dependency and build a stronger, more resilient economy,” he said in a recent speech. “Let’s stop whining and start winning.”
The Path Forward
So, what’s the plan? First, we need to tackle interprovincial trade barriers. It’s absurd that it’s easier to trade with the U.S. than with our own provinces. “We’re a federation, not a collection of fiefdoms,” says Perrin Beatty, CEO of the Canadian Chamber of Commerce. “It’s time we started acting like one.”
Second, we need to streamline energy projects. The delays in approving pipelines and other infrastructure are costing us billions. “We can’t keep shooting ourselves in the foot,” says Tim McMillan, president of the Canadian Association of Petroleum Producers. “The world needs our energy, and we need the jobs.”
Third, we need to invest in defence and innovation. As NATO Secretary-General Jens Stoltenberg recently pointed out, “Canada’s defence spending is not just about meeting targets; it’s about contributing to global security and driving technological advancement.”
Finally, we need to diversify our trade partners. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a step in the right direction, but we need to do more. “We can’t put all our eggs in one basket,” says Jean Simard, president of the Aluminium Association of Canada. “Diversification is the key to resilience.”
The Bigger Picture
This isn’t just about tariffs or trade—it’s about who we are as a country. Are we content to be a branch plant economy, or do we want to be a global leader? The choice is ours.
As Prime Minister Justin Trudeau said in a recent address, “This is a moment of reckoning, but also a moment of opportunity. Let’s seize it with both hands.”
And let’s not forget the words of the late Jack Layton, who once said, “Don’t let them tell you it can’t be done. The future is not something we enter—it’s something we create.”
Final Thoughts
Trump’s tariffs are a wake-up call, but they’re also an opportunity. Let’s stop blaming Washington and start fixing what’s broken. Let’s build an economy that’s innovative, productive, and resilient. Let’s prove that Canadians aren’t just polite—we’re tough as nails.
As Dean Palmiere, I’m here to tell you this: the time for complacency is over. Let’s get to work.
*Dean Palmiere is the founder of Dean Palmiere Consulting, your no-bullsh*t megaphone for Strategy, Culture, and Leadership content. If you’re ready to stop walking on eggshells and start making sh*t happen, visit www.deanpalmiere.com.
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