March 11, 2025

DEFEATING THE TRUMP THREAT – A WINNING CANADA STRATEGY

Donald Trump has declared economic war on Canada and has repeatedly called for our country to become the 51st state. The attachment contains a summary of the key points drawn from my remarks before the Progressive Senate Group at the Senate of Canada earlier this week.

Donald Trump has declared an unjustified economic war against our country and has repeatedly expressed his desire to annex Canada as the 51^st state.  Canadians have responded with defiance and a surge of patriotism unmatched since World War II.  The Canadian response has also been sensible: we have endeavoured to persuade Trump and his Administration to retreat from the tariff war he seeks to impose on America’s closest ally and friend; we have argued that the tariffs will destroy jobs and investment on both sides of the border; we have said clearly that proposed annexation is a pipe dream and that he should cease and desist his insulting and inflammatory language.  We have taken measures to strengthen our shared borders and aggressively counter the small quantities of fentanyl that cross into the United States from Canada.  Trump has both ignored our concerns and our actions.  In self-defence, the Canadian government has readied its own tariff counter measures.  Canada’s provinces have also acted to protect Canadian interests. Unless this trade war is rolled back, and soon, painful times are ahead for Canada.

My thoughts on how to defeat the Trump threat to Canada.

1. Accept that we are at war and adopt a wartime mentality. This requires the closest possible cooperation among Canada’s governments and an all-hands-on-deck engagement on the part of business, labour and community leaders.
2. An option that should be on the table is the formation of “Grand Coalition” composed of the national political parties buttressed by the engagement of the provinces and territories via the Council of the Federation.
3. Canadian advocacy in the United States against the destructive tariff policy and in favour of liberalized trade and economic and defence cooperation between our two countries should be massively increased.
4. We must work with our allies in the United States – at the national, state and community level and importantly, with the American business community. Corporate America cannot abide much longer the wrong-headed economic policies pursued by Trump.  The markets have already begun to deliver their unequivocal verdict on what The Wall Street Journal has described as “the dumbest trade war in history”. As the chaos and uncertainty deepen, prepare for more market bad news in the weeks and months to come.  It is also crucial that we keep in mind that our quarrel is with Donald Trump are not with the majority of Americans who see Canadians for what we are.  In America, where “all politics is local”, I predict that the backlash against the economic damage will grow and be reflected in the polls – and eventually at the all-important mid-term elections.
5. Let’s not give up on the free trade agreement that binds Canada, Mexico and the United States. While Trump actions have egregiously violated the spirit and the rules of the pact, it remains in place as a vital reminder of what the rule of law can deliver in jobs and societal benefits.  Along with our Mexican allies, we must press for a sensible re-negotiation – a negotiation that will be very tough – but certainly worth the effort.
6. Let’s reach out boldly to allies beyond the continent who are also threatened and deeply concerned about Trump policies – among them, Britain and the European Union, Australia, Japan and South Korea. Making common cause with them will pay dividends.  Hopefully, some of these common voices will be heard at the upcoming G7 meeting in Canada in June.
7. As important as these measures to deal with the short-term crisis may be, there is an even more crucial long game that Canada must play. The Trump offensive has lit a fire in Canada.  At last, we are ready to tackle the complacency that has afflicted us for far too long and which I described in my recent book “Private Power and Public Purpose”.  Not a moment must be wasted as we tackle the top priorities and opportunities we face as Canadians.  These include:

• establishing the free movement of good and people within Canada;
• making the right choices about spending and taxation at this time of crisis;
• removing barriers to investment and entrepreneurship and the red tape standing in the way;
• thinking big again as we embrace national infrastructure projects;
• aggressively exploiting the advantages of AI in solving the productivity puzzle;
• celebrating and leveraging our massive resource endowment and pursuing clean energy;
• leveraging our advantageous collection of trade agreements in pursuit of diversification;
• punching above our weight once again in our foreign policy as a consequential middle power; and
• investing massively in our depleted armed forces and in Canada’s defence production base.

8. While this action list is formidable in size and scope, it is doable. My reason for saying this?  Over the decades as we have pondered these issues, we have come up with clear-eyed solutions again and again.  As Canadians, we are among the world’s best at policy analysis.  But sadly, we fail far too often at implementation.  Ah, that damn complacency!
9. Looking to the future, Trump will pass from the scene in due course. But Trump style politics may persist and with it profound uncertainty and dangers for Canada.  Our national interest demands that we carve for our children and future generations a Canada that is independent and resilient.  We are in desperate need of a carpe diem mentality.  More than ever, now is the moment.